The Argentinian anti money laundering regulator wants cryptocurrency firms to inform their neighbors about any suspicious activities and to take AML steps on Argentinian soil. According to local media, the regulation could be approved this year. This may be due to the fact that the new requirement was approved as part of the deal signed by the country with the International Monetary Fund.
Argentinian Exchanges may have to report transactions late this year
The Argentinian anti-money laundering regulator is serious about cryptocurrency transactions. Local media reports that the Financial Information Unit, which in Argentina is anti-money laundering regulator is currently working on a proposal to make cryptocurrency exchanges and companies that have operations on Argentinian soil entities reporting to the local authority.
To comply with new regulations, crypto companies will be required to develop anti-money laundering strategies and to report suspicious transactions to this organization. Companies offering crypto-related custody or trading services could find it difficult to comply with the regulations in Argentina.
These companies had until now to conform to a 2019 tax reporting regulation.
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According to key figures in Argentina’s crypto world, it is a natural result of the agreement the country signed with the International Monetary Fund for the renegotiation of $45 billion of debt. The IMF required the nation to “discourage the use of cryptocurrencies in prevention of money laundering and informality.”
Ignacio Carballo (director of UCA), a fintech- and digital baking company, is among these figures. Carballo has criticised the impact these calls and measures could have on local markets. He stated that he was adamant about the topic:
The only thing that seems highly debatable to me is ‘disintermediation’, since it is an unstoppable phenomenon in the world. I don’t think it’s a matter of forcing it, but rather that we should care for and protect the already unstoppable ‘decentralization.’
Carballo said that such a move could cause users to switch to more decentralized alternative options that include P2P exchangings. However, this can increase their vulnerability to being scammed.
Rodolfo Andragens (president of Bitcoin Argentina), an Argentinian non-profit that promotes the use of cryptocurrency, believes this solution of desincentivizing its use is also pointless. He declared:
To prevent money laundering, it is like trying discourage dollars being used. This is absurd: Cryptocurrencies should not be discouraged. Instead, they should have full control over the space in which they are traded.
How do you feel about the new regulations being developed by Argentina’s money laundering regulator? Leave a comment below.
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