Join today to get full access to our basics to advance crypto courses, exclusive insights, research & analysis.
Central Banks

Argentine central bank prepares regulations for digital wallets

25 Feb 2022 : 13:42
2 min read
  • Argentina's central bank is reportedly working on a new set of regulations to control the totality of digital wallets in the country
  • The bank announced that it is introducing these new rules because there is a high incidence of fraud
  • AFIP, Argentina's tax authority, has already begun seizing funds in digital wallets

Argentina’s central bank is reportedly working on a new set of regulations to control the totality of digital wallets in the country.

The central bank wants to improve KYC measures

Argentina’s central bank is setting its sights on the use of digital wallets. The bank’s board of directors is reportedly working on a new set of regulations to better understand what happens to funds in these wallets and to improve KYC measures. The bank announced that it is introducing these new rules because there is a high incidence of fraud in the use of these tools and some companies are not doing their due diligence in accepting customers.

The measure will allow the bank to control the flow of users who currently use these digital wallets such as Mercado Pago, whose number is estimated at almost 30 million. Last year, the Argentine Central Bank established that these companies must keep 100% of customers’ funds in their bank accounts, which deprives companies of the possibility of benefiting from investments made with some of these funds.

Seizures have already happened

While the Central Bank is drafting this new legal framework for digital wallets, the AFIP, Argentina’s tax authority, has already begun seizing funds in digital wallets from indebted taxpayers. It is expected that the digital wallets of nearly 10,000 taxpayers will be seized in the coming months.

This plan may already be being implemented, as local media are reporting that the first case of these seizures has already taken place. The first seizure was reportedly requested by the AFIP, and a judge authorized the institution to take control of the funds in the digital account to settle debts accumulated by the user. The state initially tried to seize the taxpayer’s bank accounts, but the result of this action was negative.


About Author

Stan Colenbrander

More articles by this author

Stan is the head of news and podcast host at Cryptonary. He was formerly a member of the Cryptonary Pro community. In early 2021, he decided to drop out of journalism school at university to pursue journalism in real life and make an impact in the crypto space. . His areas of interest include the NFT industry, decentralised finance, and crypto start-ups.

Post a Comment

GET YOUR CRYPTO DAILY BRIEF

Delivered daily, straight to your inbox.