The Argentinean authorities have decided to tighten cryptocurrency circulation in the country in order to stop money laundering and other illegal activities, Decrypt reports citing local news outlet of El Cronista.
It is reported that Argentina’s Financial Information Unit (FIU) intends to strengthen control over the circulation of virtual assets in the upcoming few months.
Financial Information Unit President Carlos Alberto Cruz claims the watchdog has seen an increase in the volume of operations carried out through virtual assets. Hence, these operations could be carried out by bad actors who intend "to circumvent international standards and avoid the [anti-money laundering] framework," Cruz added.
As a result, the FIU intends to collect more information about individuals and legal entities involved in the cryptocurrency trade.
It is expected that financial institutions and credit card companies will be obliged to report any financial activity that may be associated with cryptocurrencies.
In November 2019, bitcoin trading skyrocketed in Argentina after the country's central bank banned bitcoin purchases.
Argentina is known as one of the main countries with high volume of bitcoin trading on the LocalBitcoins.
Due to the economic crisis in Argentina, an increasing number of citizens were seeking to invest in cryptocurrencies. Since April 2018, the peso has significantly fallen in price, which seriously affected the solvency of residents.
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