Hitting Bitcoin in Argentina

The Argentine monetary authority announced that it is putting under the microscope a group of nine companies that allow investing in cryptocurrencies.

The Central Bank of the Argentine Republic began the inspection of a group of fintech that are offered as a link to finance investment projects using crypto assets as a channel for savings, to determine if they are carrying out unauthorized financial intermediation.

The Financial Entities Law delegates to the Central Bank the power to request information when there is a suspicion that a person or company is carrying out financial intermediation tasks and, if applicable, order the immediate and definitive cessation of the activity and apply sanctions.

The inspection covers nine fintech companies that collect deposits that are converted into crypto assets, in particular cryptocurrencies, which are then applied to both investment and consumer financing, offering a reward.

“If the investigations determine indications of financial intermediation without authorization, the BCRA will make the corresponding criminal complaints in the terms of article 310 of the Penal Code,” the entity chaired by Miguel Pesce ruled.