Argentina’s Money Regulator Unidad de Información Financiera (UIF) has ordered financial services companies within the country to report all transactions involving digital currency.
The Unidad de Información Financiera document, which outlines amendments to previous regulations, cites the threat of money laundering and criminal financing. It suggests that the UIF will act as a conduit for information enabling greater oversight of bitcoin and other virtual currencies.
The announcement, dated 4th July, comes more than a month after Argentina’s central bank issued a warning to businesses seeking to use digital currencies. In that release, the BCRA cautioned that there is no consensus on the nature of these assets.
A translation of the UIF resolution reads:
“Virtual currencies are often traded remotely online. The movement of assets, and that entities from different countries can participate in the same jurisdictions that do not have controls to prevent money laundering and financing of terrorism, make it difficult for regulated entities to detect suspicious transactions.”
Financial institutions in Argentina are required to file monthly digital currency reports with the UIF. The purpose, the agency said, is to prevent criminal funds from moving outside of the country’s regulatory framework.
Argentinian UIF Mandates Reporting on Bitcoin Activity