Argentinian Central Bank Restricted Bitcoin Traders from Buying Dollars
On July 21, the Central Bank of Argentina announced that those who have purchased Bitcoin or any other digital asset in the past 90 days with pesos will not get to admittance the single free exchange market and purchase dollars at the official rate.?
The communication, numbered 7552, proclaims that access to the official dollar markets will be available to organizations & individuals that: "Have not delivered funds in local currency or other local assets (except funds in foreign currency deposited in local financial entities) to any human or legal person, resident or non-resident, related or not, receiving as prior or subsequent consideration, directly or indirectly, by itself or through a related, controlled or controlling entity, foreign assets, crypto assets or securities deposited abroad."
These restrictions must be fulfilled 90 days before the purchase of dollars in the official market.
The step is taken to stop the corruption of money leaving the country as it is simpler to do the transaction with cryptocurrency and dollars. If an individual or company has pesos in their account, and they use them to purchase U.S. dollars from a regulated exchange, they can then utilize those dollars to invest in cryptocurrencies like BTC, and ETH.
Retreating U.S. dollars from the country will be bad for Argentina’s economy. In the South American country — which has the third biggest economy in Latin America — the nation's center-left organization of President Alberto Fernandez is fixing currency controls and rising rates of interest to get hold of the rising inflation.
CBW - External Analyst