The Central Bank of Argentina announced that it is investigating cryptocurrency investment companies. Specifically, the bank stated that they are investigating companies that provide extraordinary returns through cryptocurrency investments, which is unreasonable. According to the bank, these companies may operate in the form of a Ponzi scheme and are currently studying the possibility of legal action against them.

The Central Bank of Argentina investigates crypto investment companies

The Central Bank of Argentina issued statement Yesterday they explained their actions against some cryptocurrency investment companies. The agency announced that it is reviewing some companies that “provide returns by operating encrypted assets and cryptocurrencies that are incompatible with reasonable parameters in financial business.” The bank also reminded users that the performance and investment risks of using these platforms cannot be assessed by the institution.

The bank has taken actions against these companies in certain areas of the country, inspected them through the Financial and Transaction Entities Supervisory Authority, and issued suspension orders for these activities. The bank will now take judicial action against the managers of these companies.

Concentrated activity

Some of the suspicious businesses are concentrated in specific provinces of the country, using publicity campaigns to attract more investors. The Central Bank of Argentina discovered such activities in the provinces of La Rioja and Catamarca, aimed at attracting followers to participate in an “opaque asset management plan.”

Cryptocurrency-related scams are not new in Argentina, but they have multiplied this year.NGO Bitcoin Argentina warn Opposed to this type of plan earlier this year and pointed out that these groups are using Popularity Crypto assets in the country. At the time, Javier Madariaga, the chief executive of the organization, stated:

We have seen encrypted pyramids or Ponzi schemes repeat themselves in different provinces of the country. The common denominator of these scams is that the intermediary promises to obtain substantial economic returns through capital contributions, which cannot be guaranteed by any investment.

For these operations, the Central Bank of Argentina has also begun to take actions to control the rise of these activities. The agency revealed that it is currently contacting these companies, asking them not to conduct investment activities, and is analyzing whether to take legal action against the suspected Ponzi scheme.

What do you think of the investigation of crypto investment companies conducted by the Central Bank of Argentina? Tell us in the comments section below.

Sergio Goshenko

Sergio is a cryptocurrency journalist based in Venezuela. He described himself late and entered the crypto space when prices rose in December 2017. With a background in computer engineering, living in Venezuela, and being affected by the cryptocurrency boom at the social level, he offers a different perspective on the success of cryptography and how it can help people without bank accounts and underserved people.

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