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Top Cryptocurrency news: Argentinian government prohibits cryptocurrency investors from buying dollars

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The Argentine Central Bank has imposed additional limitations on citizens and businesses that have acquired cryptocurrencies to serve as a hedge against currency devaluation. 

With the goal of restricting the rise in the exchange rate, the bank will only sell dollars at an official rate to citizens and businesses that have not acquired cryptocurrency for at least 90 days prior to the operation.

The Argentine government is attempting to halt the recent surge in the blue dollar exchange rate, which is the price of the US dollar in the country's informal marketplaces. The Argentine Central Bank has issued a resolution prohibiting businesses and individuals who have purchased cryptocurrency from accessing dollars at the official rate.

According to local sources, the new set of regulations would be aimed at closing the loophole that certain businesses exploit to profit themselves by acquiring cheap dollars at an official rate and then using them to acquire cryptocurrencies to exchange at a higher cost. To avoid the circumstances outlined, the Argentine Central Bank has imposed a new limitation that prohibits buyers of these dollars from purchasing any cryptocurrency within 90 days after the transaction.

Argentinians' comments were mainly unfavorable, with some questioning the efficiency of such a step. An economist, Agustin Monteverde, criticized the reasoning behind this approach. He claimed that “the measure is arbitrary and discretionary. It is unclear why anyone who purchased a specific item (which is what cryptos are) cannot enter the exchange market.”

The measure went into effect on July 22, and Argentinians are already attempting to shift away from regular exchanges, which are required to notify about crypto transactions, and to peer-to-peer-based exchanges, where transactions can be private between two individuals.

Read also: Resignation of economy minister raised Premiums on Argentina's USD stablecoins.

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