The Central bank of Argentina has announced that it will be taking action against cryptocurrency investment companies that offer “returns through operations with crypto assets and cryptocurrencies that are not compatible with reasonable parameters in financial operations.”
In a statement the central bank noted that they would be cracking down on cryptocurrency scams as well as investigating crypto companies that they believe carry a high investment risk.
“The BCRA, through the Superintendency of Financial and Foreign Exchange Entities, has carried out inspections in several provinces, initiating the respective investigations and adopting cessation orders on these practices and will initiate the corresponding summary and judicial actions to protect the public” the statement noted.
The Argentinian Chamber of Fintech recently released a proposal of guidelines on how the government should regulate cryptocurrency assets in the future. The proposal provided key issues aimed to help regulatory decisions, and includes recommendations into how regulators should approach the regulation of cryptocurrency.
Cryptocurrency adoption in Argentina has been high, largely the result of of an unstable national currency, and president Alberto Fernandez stating publicly that he was open to adopting cryptocurrencies as legal tender. The recent crackdown by the central bank draws attention to the significant rise in illegal or questionable operations.
The central bank aims to stop the growth of any illegal crypto operations, and has contacted a number of crypto companies to order them to stop offering specific investment services, and has revealed it may be taking legal action against a number of these.
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