Hurdle in the Path of Argentina Crypto Traders

Nubank Brazil's Digital Bank Achieved its Peak
  • The Argentinian government prohibits crypto buyers from purchasing dollars.
  • The bank will sell dollars to those that have not purchased crypto for 90 days.

A new set of regulations from the Argentinian Central Bank have an impact on individuals and companies who have invested in cryptocurrencies as a hedge against currency devaluation. To restrict the growth in the exchange rate, the bank will only sell dollars at an official rate to people and companies that have not purchased cryptocurrency for at least 90 days before the operation.

The price of the U.S. dollar in Argentina’s black markets, known as the “blue dollar”, has been rising steadily for a few weeks. The Argentinian government is attempting to halt this trend. A decree by the Argentine Central Bank prohibits organizations and people who have bought cryptocurrencies from using dollars at the official exchange rate.

Aim of New Restriction

The goal is to stop money from leaving the country, which can be accomplished with ease using dollars and cryptocurrencies. An individual or company can purchase U.S. dollars from a licensed exchange, and then use those dollars to purchase cryptocurrencies like Bitcoin. 

According to certain sources, the new regulations are proposed to close loopholes for some organizations to exploit exchange control channels to their advantage, buy cheap dollars at the official rate and then exchange them with these to buy cryptocurrencies. The Argentine Central Bank imposed a new regulation to avoid the situation. 

In May, Argentina’s largest bank, Buenos Aires-based Banco Galicia, launched a cryptocurrency service and made Bitcoin, Ethereum, USD Coin, and XRP available for purchase.