Vircon Legal Consultancy

Argentine Crypto News: Are Growth and Resilience Feasible Without Crypto In 2022?

News

Due to the upcoming default dates of Argentina’s debts to the International Money Fund (“IMF”) last week, the Argentine government voted positive on an IMF Program (the “Program”) called Extended Fund Facility (“EFF”) Arrangement on March 17, 2022. (1)

The program seems to hold colossal importance to be a milestone in Argentina’s crypto history since it includes provisions that potentially ‘discourage’ the deployment of crypto in the national strategy.

This article will examine the program’s issues and look at possible outcomes.

  1. Argentina in detail

High inflation rates are a common occurrence in Argentina, and a threat for the continuous increase of inflation sets pressure on the country’s economy. This downfall leads the Argentine government to find a way to handle the struggles of the financial situation while it shows the Argentine public to look for ways to preserve their assets.

In line with the latest affairs, it can be stated that while the Argentine government chooses to ask IMF for a deferral under EFF for their debts, the Argentine public prefers investing in crypto to preserve their assets. That being the case, Argentina appears as one of the top places where people choose to invest in crypto.

Despite this high rate of acceptance and adoption of crypto in Argentina, the latest acts of the government, in a way, have demonstrated that it doesn’t accept to include crypto as a way of recovery for their national strategy.

  1. Argentina’s Request for IMF-supported Program

Economic Minister of Argentina, Martin Guzman, has stated that it is the government’s responsibility to build certainty in the context of uncertainty. (2) The Argentine National Congress approved the IMF-supported program on March 17, 2022, and the government had chosen to proceed with the program to cope with the adverse effects of their economy.

Argentina’s letter of intent includes provisions like “discourage using cryptocurrencies to prevent money laundering, informality, and disintermediation. (3)

In its latest letter of intent, the government argues that the crypto sector shall be regulated to combat money laundering, informality, and disintermediation while safeguarding financial stability. Even though growth and resilience in the economy are stated on the top of the government’s priorities, this stance against crypto developments seems to enhance regulatory results regarding crypto.

  1. What is next?

Following the said approval, IMF Executive Board will meet to examine Argentina’s request for an IMF-supported Program on Friday, March 25, 2022. (4)

  1. Current and Possible Outcomes of the Program

On the current basis, it is reported that Argentina’s anti-money laundering regulator, Unidad de Información Financiera (“UFI”), which can be translated as Financial Information Unit, has started to take appropriate measures in line with the government’s stance. For example, it is reported that UFI is working on adding cryptocurrency service providers to the list of entities under an obligation to report customer transactions. (5)

Crypto service providers operating in the Argentine market will presumably be required to deploy necessary actions to minimize the information asymmetry between them and their customers. (6)

And finally, this could be an outstanding example in which restrictions for cryptocurrency have become a means of the bargain for the delay of debts defaults.

Further details and upcoming developments will be updated following the IMF’s Executive Meeting today.


  1. Daniel, W.: Argentina’s IMF bailout deal includes a wild clause that rips cryptocurrencies, March, 18, 2022, accessed via https://fortune.com/2022/03/18/crypto-argentina-imf-bailout-deal-loan/ on 23.03.2022.
  2. AFP: Argentina Parliament approves IMF deal for $ 45 billion debt, March 18, 2022, accessed via https://www.bangkokpost.com/business/2281359/argentina-parliament-approves-imf-deal-for-45-billion-debt on 23.03.2022.
  3. Daniel, W.: Argentina’s IMF bailout deal includes a wild clause that rips cryptocurrencies, March, 18, 2022, accessed via https://fortune.com/2022/03/18/crypto-argentina-imf-bailout-deal-loan/ on 23.03.2022.
  4. Rice, G.: Statement by the IMF Spokesperson on Argentina, March, 19, 2022, accessed via https://www.imf.org/en/News/Articles/2022/03/19/pr2281-statement-by-the-imf-spokesperson-on-argentina on 23.03.2022
  5. Doll, I. O.: Argentina to include crypto firms anti-money laundering regulations, March 15, 2022, accesses via https://www.batimes.com.ar/news/economy/argentina-to-include-crypto-firms-in-anti-money-laundering-regulations.phtml 23.03.2022; Daniel, W.: Argentina’s IMF bailout deal includes a wild clause that rips cryptocurrencies, March, 18, 2022, accessed via https://fortune.com/2022/03/18/crypto-argentina-imf-bailout-deal-loan/ on 23.03.2022.
  6. Doll, I. O.: Argentina to include crypto firms anti-money laundering regulations, March 15, 2022, accesses via https://www.batimes.com.ar/news/economy/argentina-to-include-crypto-firms-in-anti-money-laundering-regulations.phtml 23.03.2022
Tags :
Blockchain,Crypto,Crypto News,Digital asset,IMF Program,web3
Share This :

Leave a Reply

Your email address will not be published. Required fields are marked *

Recent Posts

Have Any Question?

Feel free to reach out.