The calls for crypto regulation in many nations by their financial regulators continue to be high. Many analysts believe that if these regulations are in place, they will boost cryptocurrency adoption in the society, and the public will get a closer understanding of the Blockchain market. On the other hand, a few analysts have disagreed with the regulations policy, as they believe that such actions will likely give more power to regulators to hamper the growth of the Blockchain space.
However, the Central Bank Of Argentina is now the latest financial watchdog looking to get a closer look at cryptocurrency trading in the country. It has now requested local banks to report any form of cryptocurrency trading activity by citizens via an identity sheet.
Crypto traders in Argentina will fill out an identity form anytime they are transacting
In the new policy meted out by the CBA, the banks are expected to submit any cryptocurrency-related transactions carried out by their clients to the CBA. According to the official release by the nation’s apex regulatory body, the local banks are expected to provide any form of confidential and open information regarding their customer’s cryptocurrency trading activities.
Unfortunately, this new policy has not been received well by the nation’s crypto traders, who are displeased by the financial watchdog’s nosy nature into the cryptocurrency market. Many crypto analysts in the country believe that the new policy will hamper the Blockchain space’s growth in the country, as the space has just started to make waves.
Also, many analysts are furious that the CBA is focused on something that is not so important at the time, as the country’s inflation rate is at an ATH. However, while many are furious about the new policy, it is worthy to note that the CBA is not acting against the law. The financial laws in Argentina permit the CBA to have custody of any related financial activity. Hence, the CBA is only fulfilling the law requirements.
CBA is focused on the wrong policy
Many analysts have debated the new policy and have such suggested that the CBA is fighting the wrong battle. Argentina is one of the few countries in the world that have been ravaged by the harsh impact of the COVID-19 pandemic. The country’s inflation rate is pegged at about 50%, as more citizens continue to fall into the poverty line.
Speaking on the new policy, Franco Amarti, one of the nation’s famous Bitcoin analysts and investors, believes many Argentines have found solace in Bitcoin. Amarti believes that the nation’s citizens have been flooding Bitcoin in the last year simply because of its profit margin.
Amarti also believes that the CBA is interested in knowing how much funds are being generated by citizens via cryptocurrency, hence why the new policy was introduced. However, Amarti believes that this new policy will not halt trading like the one introduced last year, as he expects the cryptocurrency community in the country to continue to thrive.