on a global scale cryptocurrency While the strict regulations that have started to be applied to the market of digital assets continue, another country is preparing to take a step in the field of regulation of digital assets.
According to local sources, the Central Bank of Argentina is working on new regulations for digital wallets in the country, including cryptocurrency wallets.
Argentine Officials Say New Cryptocurrency Wallet Regulation Aims To Prevent Frauds
Recently, digital wallets have seen a global increase in popularity, and Argentina’s Central Bank has turned its attention to these wallets. The central bank’s board of directors said it will review the new regulations in an effort to “prevent fraud in the market.”
The Central Bank of Argentina is thought to be particularly focused on the use of digital wallets. According to leaked reports from local media, the new regulation will try to prevent fraud attempts organized using cryptocurrency wallets.
According to the sources, the country’s central bank has formed a team to manage new regulations to better understand how funds in cryptocurrency wallets work and improve their KYC measures.
Regarding the implementation of these new laws, the central bank said:
“There is no prohibition practice here. We will ensure that only digital wallets have the obligations that banks have to know their customers.”
The Central Bank of Argentina stated that the regulations to be made came to the fore because some companies did not do their part in the matter.
With its new regulations, the central bank will be able to provide control over the money movements of its users on platforms such as Mercado Pago, one of the country’s digital wallets. Mercado Pago wallet is known to have around 30 million users in the country.
However, in the past, country authorities paved the way for confiscating assets in digital wallets.