Argentina Investigates Illegal Crypto Activities in Fintech Firms

Charges will be taken against 9 companies after further review
  • Argentine bank investigates nine fintech firms for criminal activities
  • Prison time and other criminal charges might be filed upon if evidence is found
  • Statement of El BCRA states that these firms have been converting funds into crypto assets

When a decentralized currency is left open for the public to utilize, without any Government intervention, criminal activities are bound to occur. There are two types of countries that react distinguishably about cryptocurrency. Some nations that have developing economies tend to accept cryptocurrency to circumvent dollar domination in their country, while other countries that have financially developed economies, are trying to regulate or demolish the existence of cryptocurrencies like bitcoin from their territories. 

Argentina Fintech companies allegedly carrying out illegal crypto investments

The Central Bank of Argentina, El BCRA, started an investigation against 9 fintech firms that have been allegedly carrying out criminal activities that go against the crypto law in the country. According to a statement issued by the Argentine bank, these companies have been acting as illegal intermediaries through cryptocurrency. It is believed that these firms have been transmuting their deposit funds into cryptocurrency assets, which is further put to use in investments and consumer finance. These fervour transactions that are supposedly being delivered by the camouflaged fintech companies act as a source of side revenue for them. The Central Bank is yet to reveal the names of the 9 firms that have been called out for illegal actions.

Criminal charges could be taken against these firms

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According to the laws in Argentina, the Central Bank has the right to cease the activities of the firms that are involved in unauthorized financial intermediation and can also level sanctions on their operations. The companies are on their way to be notified about the same by this week. With the collection of validated proof that claims the charges to be true, BCRA holds the power to use the article 310 of Argentina’s criminal code and file criminal charges against the firms. This can cause them to pay 2-6 times the amount of illegal transactions and even 1-4 years of prison time. Along with these punishments, the firms may be disregarded from the country and their operations could be disqualified. 

Cryptocurrency adoption in Argentina stumbles its course

In the year 2020, Argentina adopted crypto smoothly and the Government even set up tax regulations that monitored monthly crypto exchanges carried out by the people. The country’s economic problems had only one solution according to its people and that was cryptocurrency. They even found a new store of wealth that acted as a catalyst to economic growth.

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Steve Anderrson
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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