On Argentina, strong inflation and exchange control made savers turn their money to the world cryptographic, thus they were creating specialized exchange houses cryptocurrencies and that operate from the South American countryHowever, there are indications that the central bank of the Argentine Republic is initiating an attack against these exchange houses.
The restrictions begin to arrive at exchange houses that operate with cryptocurrencies, They are not only limiting themselves to requesting information through customer forms that operate with cryptocurrencies, but they are apparently imposing new obstacles on it.
Policies of key (meet your client), prevention of money laundering and the fight against terrorism are the main causes adduced from the central bank for the closing of accounts at these exchange houses.
A technical issue is added to this inconvenience, in Argentina a banking interconnection system has been created for payment or transfers through QR code, for which, companies providing financial services must have a current account enabled for such end.
The question is that until now only the Industrial Bank has been the provider of the current accounts used by these exchange houses, that allowed the use of a current account in pesos and another in dollars, but with the restrictions of the KYC and other measures, these accounts are being closed, and therefore the cessation of operations.
This situation has caused the exchanges with more time to associate with other financial institutions in order to continue operating, since it is not possible at this time to start the process for the opening of new accounts that enable the exchange between cryptocurrencies and currency local.
For this reason, cryptographic companies dedicated to the exchange of currencies show an alarming concern, fearing that the cessation of operations in the country is approaching.
The profitability of the companies dedicated to this sector, actually take their profits from the retail of the purchase and sale of cryptocurrencies, and when closing the current accounts of the exchanges, these commissions disappear, so the profitability of the business falls off.
This is an important point, the local exchange houses must be adapted so that users can access the funds and withdraw them to other wallets without custody, this to guarantee savers timely access to their funds.
Currently, exchanges such as BuenBit have partnered with the BKR wallet that already has its virtual checking account and the QR code, in order to jointly launch a Prepaid Mastercard card. The difference between this fintech and other less known is the capital available to make a investment of this type.
It is estimated that there are at least 25 registered cryptocurrency trading companies in Argentina, with a total of approximately two million virtual accounts that currently operate under the regulations that the Central Bank has been applying.
It should be remembered that Argentina is in the top 5 of the countries latin americans with more adoption of cryptocurrencies, this without having clear and concise legislation on cryptocurrency operations.
Central Bank of Uruguay plans to regulate cryptocurrencies in the country
In effect, it is expected that the Congress of that nation will discuss a “Crypto Law” that has not yet started, in which it is unofficially known that companies dedicated to cryptographic retail would be grouped as before, under the policies dictated by the Bank Central and complying with normative through the governing body that would be the National Securities Commission.
The truth is that in statements to the social media, the president of the financial institution has indicated that they are not good indications for the market cryptocurrencies to operate on the stock market, so new restrictions are likely to continue to emerge.
These changes in the rules of the game for crypto companies come amid a new restriction on dollar financial, Argentina has different dollar prices and different ways of accessing the American currency, and each time the acquisition and disposal fences leave savers without many optionsTherefore, in the midst of all these restrictions, the world of cryptocurrencies had had a boost in the country, but this blow to the operations of exchange houses will affect this sector negatively.
Keep reading: