The government of Argentina has been taking some stern measures on crypto trading to eradicate money laundering and other illegal activities from the country.
According to some analysts, apart from eradicating the illegal activities, the latest measures would help the country in preventing its national currency Peso from further going down in value.
Financial Information Unit Measures
A report by El Cronista, Argentina’s newspaper, mentioned that the Financial Information Unit (FIU) which is a government agency for a monitoring agreement with anti-money laundering laws, has been looking for some strong measures for crypto trading.
A week ago, Carlos Alberto Cruz, the President of FIU, has said that in recent time the operations of the virtual asset have increased in the country. He further said, “These transactions could be carried out by people who intend to circumvent international standards and avoid the [anti-money laundering] framework”.
The agency has stated that its aim is to gather more information about the individual or the entities that are involved in crypto trading. The FIU further mentioned that it has ordered many banks, credit card companies to exchanges and mutual funds that if they find any suspicious activity on their platform then they would have to report the agency.
The FIU would further analyse some other entities like mail and shipping firms, stockbrokers, NGOs and also the art galleries.
Argentine Citizens Converting Peso Into US Dollars
El Cronista has notified that currently, the government is already battling with the parallel exchange markets because most of the Argentine citizens dispose of their Peso on that platform for more stable, foreign currencies and in the midst of this FIU released the order.
The founder of Buenos Aires Bitcoin Center, Franco Amati, recently tweeted that the government of Argentina has been trying to stop its citizens from buying Bitcoin with Peso, because after purchasing it, the citizens convert that Bitcoin into the US dollars on other foreign exchanges.
Argentine government wants to stop the “bitcoin dollar” (buying BTC with ARS inside Argentina and converting those BTC to USD abroad). 🤦♂️😂
Let’s see how that works: https://t.co/ikrkB3OwD1
— Franco Amati 🦔🌎⚡ (@franamati) May 21, 2020
The trading volume of Bitcoin in Argentina has been increasing in the country at the same speed its economy is coming down. As the year 2020 started, Bitcoin trading experienced a significant spike on several P2P exchanges.
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