In a bid to curb money laundering and illegal financial activities, the Financial Investigation Unit (FIU), a body regulated by the Argentinean government to prevent illegal financial activities, has announced its intentions to bring more restrictions to cryptocurrency trading in the country.
As reported by El Cronista, an Argentine newspaper, the FIU is seeking to bring more restrictions to cryptocurrency trading in the country as they fear that it could be used by people who are trying to go against the guidelines of the country’s financial regulations.
The FIU, therefore, said it’s taking this action in order to have details and record of every individual or entity that partake in crypto trading. The financial investigation unit went further to urge all financial institutions ranging from banks, mutual funds, exchange to credit card companies to make an instant report of suspicious activities.
El Cronista said the FIU’s decision though nicely intended could be coming at the wrong time. This is because it is coming at a time when the Argentinean Government is been raffled by the “parallel exchange market” which has caused the Argentine citizens to consider foreign currencies over the unstable Argentine Peso.
Reactions from Crypto and Bitcoin Lovers
This move by the Argentine financial regulatory body (FIU) has pulled reactions from a large number of investment experts, financial analysts, crypto enthusiasts, and crypto entrepreneurs.
Among notable reactors is the founder of the Buenos Aires Bitcoin Center, Franco Amati, who was of the opinion that the Argentine government is only making a move to stop its citizen from buying Bitcoin with the country’s local currency and converting the acquired Bitcoin on a foreign exchange to the US Dollars.
Although the Argentinean economy has been experiencing drastic meltdown in recent times, the Bitcoin trading volume in Argentina has been on the increase. The Argentine Bitcoin market had experienced a huge spike so far in the year 2020, Bitcoin had traded at a premium rate on peer-to-peer exchange in the Argentine community; this could also be observed with DCI stablecoin.
Another notable observer who went on twitter to voice his opinion is the well-known Venezuela-based Crypto trader David Battaglia. David condemned the latest action of the Argentinean government and qualifies it as a ploy aimed at confiscating the little wealth left for the Argentines.
Italian lawyer and prominent crypto investor Micky Sierra in his own view opined that the government action could pose some dangers to cryptocurrency investors if the FIU began to seize crypto funds with allegations that they are of fraudulent origins.