BCRA Asks Banks in Argentina to Acquire Details of Cryptocurrency Users

April 5, 2021      Deepshikha Gupta

Central Bank of Argentina Republic (BCRA) has asked the operating banks to acquire and supply details of all their cryptocurrency users, within its jurisdiction. The apex bank mandated banks within the Republic to provide information as regards each client’s Unique Tax Identification Code (CUIT), address, number of account, type of account, and the names of those authorized to use the account in question in a sheet, leaked by the local Bitcoin community on Twitter.

BCRA Asks Banks to Monitor Cryptocurrency Users

 The message attached with the sheet further states that the request for data is necessary and within the area of operation of the Central Bank of the Argentine Republic (BCRA) because it has “monitoring functions of payment systems.”

The leaked publication has so far been met with open strictures with a handful of Argentine nationals taking the question to Twitter, asking why the bank would make such a request? The reason being they are still skeptical about the transparency of the BCRA in this regard and some implying that absolute regulation of cryptocurrencies in the country is rather impractical.

Opposed to conjecture, it could be a step towards the blockade of accounts that have transacted with digital assets. The Central Bank later confirmed the authenticity of the sheet to a local news platform, stating that the exercise is aimed at ascertaining whether or not it is necessary for crypto assets to have greater regulations in the country. However, the country’s Crypto community seems not to be convinced with the statement. 

Adoption of Cryptocurrency in Argentina 

Increasing the adoption of Bitcoin and other cryptocurrencies in Argentina, compel the country’s financial authorities to have strict regulatory measures on all digital assets.

The Financial Information Unit (FIU) of Argentina mandated every financial entity that deals with any cryptocurrency to send data on all cryptocurrency transactions made within its platform. Stating that “this exercise is for the purpose of adapting the system for the prevention of money laundering and terrorism financing in the country.”

Later on, BCRA decided to establish rules and conditions for the acquisition of dollars, highlighting the fact that companies who wish to acquire dollars should not have “liquid assets.” 

Regardless of these strict measures imposed by the government in the bid to transform it otherwise, Argentina recently ranks among the top Latin American countries with the use of cryptocurrencies. Its neighbor, Bolivia, has completely banned cryptocurrencies and exchanges.

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#Adoption of Crypto in Argentina #Argentina’s Central Bank #Central Bank of the Argentine Republic (BCRA) #Financial Information Unit (FIU)
Deepshikha Gupta
Deepshikha Gupta

A student from a technical background, Deepshikha found Bitcoin in 2020 and has been an evangelist ever since. A B.Tech turned into a full-time crypto-writer, she tries to bridge the gap that currently exists between the crypto world and people from non-technical backgrounds, through her simplistic yet effective form of writing. She finds that her writing for cryptocurrencies can redefine the way the audience interacts with the crypto space.