Bitcoin Purchases May Rise As Argentina Introduces Capital Controls, with $10,000 as Monthly Limit

Libra Coin News
Mon, 09/02/2019 - 10:23
Yuri Molchan
Bitcoin price increases overnight as Argentina imposes capital controls, allowing only $10,000 to be bought per month
Cover image via 123rf.com
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As reported by Bloomberg, over the weekend, government of Argentina introduced restrictions on USD purchases to decrease the outflow of foreign currency reserves, trying to prevent the local economy from default.

The monthly limit on buying and spending is $10,000 and this could be the reason that made the Bitcoin price come close to $,9,800. 

Image by CoinMarketCap.com

The growth in price was recorded simultaneously with appearance of the reports about the new capital control limit in Argentina.

Financial crisis spurs Bitcoin sales

As per Bloomberg, ordinary citizens in Argentina have been set a limit for buying not more than $10,000 per month or sending the same amount to an account they do not own.

For buying the USD in the foreign exchange market, local companies will have to ask for a permission.

Last year, when the financial crisis hit Venezuela, president Maduro decided to launch a local cryptocurrency Petro. Since many doubted that Petro was pegged to the local oil reserves, many started using Dash and Bitcoin as actual money in the country.

The Bitcoin price started going up on Sunday evening at the same time as the news of Argentina came out.

A crypto expert on Twitter also recommends Argentinians buy Bitcoin.

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LocalBitcoins tightens its KYC rules

Meanwhile, the Finnish-based decentralized crypto exchange LocalBitcoins, which has been popular around the world and particularly in Venezuela with other crisis-struck countries around it, has announced the tightening of its customer-identification rules.

The new KYC rules are valid since September 1. This is caused by the new Finnish laws that the company now must follow inside Finland and around the world.

Now, to be allowed to trade, average traders whose volume does not exceed 1,000 EUR per year, have to provide their full name, country of residence, email and phone number. 

Customers who trader for more than 1,000 EUR must upload a scan of their passport or other ID.

According to the new rules, all trading accounts must be verified before October 1.

In June, LocalBitcoins also banned the opportunity of in-person cash trading for crypto holders.

Many in the community now believe that LocalBitcoins is going further and further away from the privilege to be called a P2P exchange.

About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.