Argentina’s Central Bank to Investigate Companies Offering Extraordinary Returns” for Investing in Crypto Assets –

The Central Bank of Argentina has announced that it will inquire about cryptocurrency investment companies. In particular, the bank said it is investigating companies that offer extraordinary returns on cryptocurrency investments that are not adequate. According to the bank, these companies could be operating as Ponzi schemes and is currently examining the possibility of taking legal action against them.

Central Bank of Argentina Investigates Crypto Investment Companies

The Central Bank of Argentina announced a Explanation Yesterday they explained the measures they are taking against some cryptocurrency investment companies. The institution announced that it is investigating some companies that “offer returns through operations on crypto assets and cryptocurrencies that are incompatible with reasonable parameters in financial operations.” The bank also informs users about the use of these platforms, whose performance and investment risk cannot be assessed by the institution.

The bank has already taken action against these companies in some regions of the country, inspected them by the Financial and Stock Exchange Companies Supervisory Authority and issued cease-and-desist orders for these activities. The bank will now take legal action against the administrators of these companies.

Concentrated activities

Some of these alleged operations focused their efforts on specific provinces of the country and used advertising campaigns as a hook to attract more investors. Argentina's central bank discovered such activities in two provinces, La Rioja and Catamarca, aimed at attracting followers to participate in "non-transparent wealth management schemes."

Cryptocurrency-related scams are not new in Argentina, but they have multiplied this year. The NGO Bitcoin Argentina warned opposed this type of regulation earlier this year, noting that such groups were taking advantage of the benefits popularity of crypto assets in the country. At the time, Javier Madariaga, CEO of the organization, stated:

We see pyramid or Ponzi schemes involving crypto being repeated in different provinces of the country and the common denominator of these scams is an intermediary who promises a large economic return by making a capital contribution that is not guaranteed in any investment.

Regarding these operations, the Central Bank of Argentina has also begun to take measures to control the increase in these activities. The institute said it is now contacting these companies to ask them to stop conducting investment activities and is considering whether to take legal action against the suspected Ponzi schemes.

What do you think about the investigation that the Central Bank of Argentina is conducting against crypto investment companies? Tell us in the comments section below.

Sergio Goshenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price surge occurred in December 2017. With a background in computer engineering, living in Venezuela and affected by the cryptocurrency boom on a social level, he offers a different perspective on crypto success and how it helps the unbanked and underserved.

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