Argentinian Government Excludes Crypto Investors From Buying Dollars – Regulation Bitcoin News

The Argentinian Central Bank recently issued new restrictions. These are applicable to both individuals and companies who have bought cryptocurrency in order for it to be used as a currency hedge. With the goal of reducing the increase in currency exchange rates, the bank will not sell dollars to companies or individuals who haven’t purchased cryptocurrency for more than 90 days.

Argentinian crypto users are exempt from buying dollars in official markets

The Argentinian government wants to end the escalade in which the exchange rate for the blue dollar (the price of the U.S. Dollar in informal markets within the country) has been experiencing since a few weeks. The Argentinian Central Bank issued a resolution that bars individuals and businesses from buying cryptocurrencies at the official exchange rate.

It is identified as the number 7552. The communication states that companies and individuals will have free access to the official currency markets.

Not have given funds in local currencies or other assets to anyone (except for funds in foreign currency deposited into local financial entities), whether resident or not.

These limitations must be met 90 days before dollars can be purchased in the official marketplace.

Closing The Loophole and Local Reactions

Local sources claim that the restrictions will close the loophole in which some organisations use exchange control channels to gain a profit by purchasing dollars at low rates and using them to purchase cryptocurrencies at higher rates. In order to prevent the above-mentioned situations from happening, the Argentinian Central Bank introduced a new restriction prohibiting buyers of these dollars from buying any cryptocurrency during the period of 90 days.

Although most Argentinians reacted negatively to the measure, some questioned its effectiveness. Economist Agustin Montverde criticized this logic. He said:

It is an arbitrary measure that can be used at will. Because cryptos cannot be accessed by anyone who has bought merchandise, it is unclear why.

The new measure went into effect on July 22nd. Argentinians already plan to switch from traditional cryptocurrency exchanges which must disclose information about crypto transactions, to peer to-peer-based ones where transactions can be kept private between the two parties.

Let us know your thoughts on the new restrictions imposed in Argentina by crypto investors. Leave a comment below.

Sergio Goschenko

Sergio, a Venezuela-based cryptocurrency journalist. His entry into the cryptocurrency world in December 2017 was when it saw a price surge, and he describes himself as being late to this game. His background is in computer engineering, but he also lives in Venezuela and was impacted at the social level by the crypto boom. He offers an alternative perspective on the success of cryptocurrency and the benefits it has for the underbanked.

Credit for the imageShutterstock. Pixabay. Wiki Commons