It is not a mystery to anyone what the cryptocurrencies represent in countries such as Argentina and Venezuela. However, the system does not tire of imposing obstacles. Now, a crypto exchange has suspended the purchase of cryptocurrencies in u.s. dollars for argentine citizens.
The argentines had found a possible refuge in the cryptocurrencies, especially in the stablecoins as DAI, to circumvent the exchange controls. However, the situation has become more complicated.
Buenbit says goodbye to the few DAI/USD
As mentioned above, Argentina is a country with rigid exchange controls that have led citizens to seek alternatives and the cryptocurrencies have been a solution.
However, the argentines will have to face a new obstacle.
Today, the crypto exchange Buenbit announced that, from Tuesday, 14 July at 23:59 hours, will cease to receive deposits in dollars and service will be suspended for the purchase and sale of DAI with dollars (DAI / USD).
In specific, Buenbit established that in the crypto exchange could notice that some users would have been in violation of the regulations of Argentina exchange rate policy and access to the forex market.
“From Buenbit we respect the law and the regulations of each country where we operate, that is why we have decided to temporarily suspend the operations of the market DAI/USD for the users residing in the Argentine Republic,“ reads the press release.
However, an important fact that must be noted is that, since CriptoTendencia, we were not able to find the official press release by Buenbit in any of your social networks.
In fact, in the social networks of Buenbit there is no trace for the moments of the proclamation. However, on Twitter multiple users have posted screenshots of the same.
Apparently the screenshots are from an email that were registered users in the crypto exchange.
I got a mail from Buenbit notificándome that for Argentina to stop trading in dollars.
Another example of the “Effect Lipovetzky”: put restrictions to operate in dollars looking for people to save in pesos, which creates even more incentive to flee the peso to the dollar.
Doctor — Gorilla (@ElDoctorGorila) July 13, 2020
The objective of the rigid exchange control, and the obstacles imposed seem to want to encourage the saving in argentine pesos. However, it has not been successful.
The issue with Buenbit is that functioned as the intermediary perfect. In the first place, the crypto exchange allowed for the purchase of DAI, a stablecoin 1:1 with the us dollar, argentinean pesos. In addition, the crypto exchange also allowed to sell those cryptocurrencies for dollars.
In this sense, it was a way through which people could circumvent the exchange control. In fact, this argument did notice several people in the networks:
What is not where to go?
As the argentine government seeks to encourage its citizens to save and return to trust in the argentine peso, these prefer to go to the cryptocurrencies or the dollar.
In fact, during the second quarter of this year 2020, there has been a significant increase in operations in criptos from the country.
In the case of localbitcoins, the platform saw an increase of almost 40% in the volume of negotiation from Argentina since January. Not to mention the case of Paxful, the total volume of Bitcoins traded with argentine pesos multiplied in six months.
This leads us to ask: Will it have any real effect the new obstacle tax the crypto argentine users? What will play a new lock? The answer to this last question is: Yes, the more likely it is that they do it because that’s what the criptos.