Argentina investigates firms for illegal cryptocurrency activities

  • The Central Bank investigates transactions that are suspected to be unauthorized
  • Criminal charges shall be processed after finding companies guilty
  • Illegal dealings of cryptocurrency continues to increase globally

Growing technology is often considered as a boon but cryptocurrency can be considered as a bane to some countries. Advancement in technological systems like blockchain and decentralized finance has opened new opportunities for people but has also opened the gates for new scams and frauds as well. Illegal activities with respect to cryptocurrency have been increasing at an alarming rate in countries like Argentina, Netherlands, Malaysia, etc. Investigation is being conducted by the Argentine Government to get a more detailed understanding of the crime. 

Argentina finds illegal crypto happenings in firms, charges might be filed

El BCRA, the Central Bank of Argentina, has carried out an investigation of nine suspected firms in the country that have allegedly been carrying out cryptocurrency transactions that are deemed as illegal in the country. In line with a statement issued by the Bank last week, they had suspected nine firms to be indulging in transactions that involved illegal use of the fundings. The firms have been charged for converting deposits by clients and funds of the company into cryptocurrency. This cryptocurrency that is being converted secretly, is being used in consumer financing and other investments as well. Making the procedure highly criminally offensive in the country with upto 4 years of prison time.

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After finding the firms guilty of the charges, they might have to face prison time or pay up at least 6 times the amount of the illegal transaction conducted by them. Investigation is still in process and charges will be filed against the companies that are found guilty. BCRA holds all rights to assign either of the charges to the firms after evidence suggests and proves them to indulge in such crimes. 

Increased illegal activities might be a doom call for cryptocurrency

Even after setting up a regulated framework for managing the cryptocurrency market in Argentina, the Government has failed to control such wrong doings that were supposed to be prevented by the Tax regulations. The Argentine Government had asked cryptocurrency exchanges to file each customer with the authorities every month. Close monitoring of every activity was supposed to be carried out by the concerned departments and teams. However, failure has struck in some parts of the country. Nine firms have allegedly been found to be doing suspected transactions for a long time. 

This reduces the trust of the people in cryptocurrency. Not because of the Government’s lack of regulation but because of the natural risk a decentralized ledger of data can carry with itself globally.

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Ritika Sharma
Ritika Kumari Sharma is an Economics Honors graduate from the University of Calcutta. She is completely into finance and believes that cryptocurrencies are the future. She is an enthusiast learner about the cryptocurrency and blockchain technology.

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