Wednesday, August 10

Argentina’s BC warns of cryptocurrency companies

The Central Bank of Argentina issued a warning to companies that operate with cryptocurrencies without the supervision of the BC and CVM in the market.

Argentina is one of the countries in the region that has seen the most growth in the adoption of cryptocurrencies in recent years, with one of the three largest trading volumes in the market in South America.

This market has attracted so much attention that Vitalik Buterin, co-founder of Ethereum, visited the country on December 17, where he even met with former president Maurício Macri.

Anyway, the sector does not have regulations yet, drawing attention to scam artists operating in the market.

BC Argentina warns of cryptocurrency scams in local market

The Central Bank of Argentina is a public institution that has been studying the cryptocurrency market for some years, and it even knows the fundamentals of this sector. In 2020, for example, tests with smart contracts in RSK were already carried out by the argentine bc, showing interest in trying out innovations in the sector.

However, cryptocurrency scams are not tolerated by the BC of Argentina, which saw its president Miguel Pesce warn of the risks in this market in August 2021. .

Last Monday (20), then, the BC of Argentina finally released a warning to cryptocurrency companies that operate in the market without supervision, mainly publicizing scams for inattentive investors.

The Central Bank of the Argentine Republic is investigating the actions of companies that take deposits and offer returns through operations with cryptoactives and cryptocurrencies that are not compatible with reasonable parameters in financial operations and warns savers about the risks of investing through these platforms that do not have underlying assets to assess the investment risk.”

According to the Argentinean authority, several investigations in this market have already been carried out in recent months, in several states of the country. Court decisions to protect investors have already been taken, prompting the agency to issue stoppage orders for some companies.

CVM and BC together in the market

Second note Argentina’s BC, the country’s CVM has also issued several warnings to cryptocurrency investors, to be careful with unreasonable investment proposals presented to them.

One example is financial pyramids and ponzi schemes, which have received attention from authorities who have already issued the stoppage order and are looking to hold those responsible in the criminal sphere accountable.

It is worth remembering that investments in cryptocurrencies are simple for those who study the fundamentals of the market and are looking to enter through the right door. But those looking for quick and easy gains, the chance of falling into a trap is huge.

In South America, this warning from the BC of Argentina comes days after the Paraguayan authority also alerted that country’s investors to market risks.