Disrupted economy attacks Bitcoin: harsh measure from Argentina

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The Argentine government has decided to tighten controls on cryptocurrency exchanges on the grounds of money laundering and other illegal transactions. However, according to the researchers; Underlying this measure against bitcoin and other crypto currencies lies the risk of devaluation against the national currency peso.

Harder laws are required for crypto money

According to the news of Decrypt from El Cronista, one of Argentina’s local news outlets; The Financial Information Unit (FIU), which provides financial control, has demanded more stringent laws from the government against cryptocurrency trading to tighten follow-up and control. “We are seeing an increasing volume of virtual assets,” said FIU chief Carlos Alberto Cruz. There are many operations. Those who performed these operations probably turned to the cryptocurrency option to bypass international rules and break anti-money laundering efforts. ”

FIU has announced that it aims to gather more information about the individuals involved in the crypto trade, and has ordered many institutions to report suspicious activities, ranging from banks, credit card companies, exchanges and investment funds to a large area. Other organizations such as postal and shipping companies, stock brokers, NGOs and even art galleries and sports clubs and formations will also be kept in greater control by FIU.

Is the timing random?

However, the timing of the intervention movements is also interesting … According to the information given by El Cronista; All these measures coincide with the fact that the citizens of Argentina frequently invest in more stable foreign currencies. Franco Amati, the founder of the Buenos Aires Bitcoin Center, made comments on what the government did on Twitter to prevent citizens from getting Bitcoin with pesos. Amati said that the Argentinians received US dollars later with the money they converted to Bitcoin.

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While Bitcoin trading has increased significantly in the country, the economy can also be said to fall at the same rate. Bitcoin trading in Argentina and person-to-person electronic money transactions increased significantly in 2020.

Researchers reacted to the government’s package of measures. The well-known Venezuelan cryptocurrency analyst David Battaglia commented on the measures taken in the country, “The operation to confiscate the underprivileged existence of the people …”

Mexican lawyer and investor Micky Sierra, on the other hand, stated that the situation might be worse for those who invest in crypto money and warned that FIU could confiscate crypto assets on the grounds that they were used in illegal activities or against their use.

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