It is no mystery to anyone what cryptocurrencies represent in countries like Argentina and Venezuela. However, the system never tires of imposing obstacles. Now, a crypto exchange suspends the purchase of cryptocurrencies in dollars for Argentine citizens.
Argentines had found a possible refuge in cryptocurrencies, especially stablecoins such as DAI, to get around exchange controls. However, the situation has been further complicated.
Buenbit fires the DAI / USD pair
As we mentioned previously, Argentina is a country with rigid exchange controls that have led citizens to look for alternatives and cryptocurrencies have been a solution.
However, the Argentines will have to face a new obstacle.
Today, the crypto exchange Buenbit announced that, as of Tuesday, July 14 at 11:59 p.m., they will stop receiving deposits in dollars and the service of buying and selling DAI with dollars (DAI / USD) will be suspended. .
Specifically, Buenbit established that in the crypto exchange, they could notice that some users have been violating Argentina’s regulations on exchange and access to the currency market.
“From Buenbit we respect the law and regulations of each country where we operate, which is why we have decided to temporarily suspend operations of the DAI / USD market for users residing in the Argentine Republic“The statement read.
However, an important fact that we should note is that, from CryptoTrend, we were not able to find the official press release by Buenbit in any of its social networks.
In fact, on Buenbit’s social networks there is no trace of the moments of the announcement. However, multiple users have posted screenshots of it on Twitter.
The screenshots appear to come from an email received by registered users of the crypto exchange.
The objective of the rigid exchange control and the obstacles imposed seem to want to encourage savings in Argentine pesos. However, it has not been successful.
The thing with Buenbit is that it worked as the perfect broker. Firstly, the crypto exchange allowed the purchase of DAI, a 1: 1 stablecoin with the US dollar, with Argentine pesos. Furthermore, the crypto exchange also allowed to sell those cryptocurrencies for dollars.
In this sense, it was a way through which people could circumvent exchange control. In fact, this argument was made by several people on the networks:
Is there nowhere to take refuge?
As the Argentine government seeks to incentivize its citizens to save and re-trust the Argentine peso, they prefer to resort to cryptocurrencies or the US dollar.
In fact, during the second quarter of this year 2020, there has been a significant increase in crypto operations from the country.
In the case of localbitcoins, the platform saw a nearly 40% increase in trading volume from Argentina since January. Without mentioning the case of Paxful, the total volume of Bitcoins traded with Argentine pesos multiplied in six months.
This leads us to ask ourselves: Will the new obstacle imposed on Argentine crypto users have any real effect? Will they manage to get around a new lock? The answer to this last question is: Yes, most likely they will because cryptos exist for that.