Gov restricts crypto investors to prevent currency devaluation

Argentinian crypto traders are currently in a complex situation as the Argentinian government announced it will restrict crypto companies and investors from buying dollars at the official rate to prevent currency devaluation.

Argentina is suffering from the worst economic crisis amidst the rising inflation and the sudden resignation of the economy minister. The local market has been showing instability despite the appointment of the new economy minister.

Seeing the insatiable economy, many Argentinian citizens and companies resort to cryptocurrencies and foreign currencies to prevent their savings from devaluing. However, this is causing the devaluation of its local currency, pesos.

As a result, the Argentinian government announced it will restrict companies or individuals who have purchased cryptocurrencies in the last 90 days will be excluded from exchanging dollars at the official rate from the official market.

The restrictions come after seeing companies benefiting from the loophole of purchasing dollars at a cheaper rate, buying cryptocurrencies with it, and exchanging them at a higher rate.

The Argentinians have deeply criticized these restrictions.

“The measure is arbitrary and discretionary. It is not understood why whoever bought a certain merchandise (because that is what cryptos are) cannot access the exchange market,”  an economist, Agustin Monteverde says.

Following the restrictions, Argentinians are now moving from traditional exchanges to P2P-based exchanges for private transactions to ensure they’re still able to keep their crypto assets.