Further to our article “PROHIBITION TO TRANSFER MONEY FROM THIRD PARTIES: a new obstacle for the crypto universe”, in this opportunity we have good news for those seeking to receive money into Argentinean accounts from overseas but looking for a more beneficial channel rather than the Free Foreign Exchange Market (Mercado Libre Único de Cambios-MULC) due to the different exchange rates existing in Argentina.
The source of this article is the post on Family Budget “How to receive dollars from overseas in cryptocurrencies”, with a brief description of the several options and combinations of compatible apps and platforms (PayPal, Uphold, Skrill, gift cards, cards, AirTM, Paxful, etc.) requiring the interaction of two parties (“peer to peer” or “P2P”). Not all of them are compatible with each other and all of them involve fixed costs or percentage amounts. Transactions are basically carried out as the balance in dollars in a platform is sold by one individual to another in cryptocurrencies, and this recipient sells later the cryptocurrencies to another individual in another platform being paid in Argentine pesos. The benefits or losses from this transaction depend mainly on the fees involved and on the difference between the official exchange rate and the rate agreed upon by the parties.
We would like to remark that all persons (whether individuals or legal persons) aiming to transact in these platforms must receive reliable professional legal and accounting advice to ensure compliance with all applicable rules (especially tax and exchange legislation). Nothing in this article can be considered a legal advice but merely news with information purposes.
The number of players in the Argentine FinTech market is growing rapidly, with new innovative developments of these platforms for money transferring and payments in local currency. This industry is likely to revolutionize the traditional banking system in the near future with its charges, fees and delays. As an example, here is a presentation of Chivo (the national digital wallet launched by El Salvador’s government) with a simple and easy explanation for money transferring between users of a same platform (a bit more complicated for Argentina since a combination is required to be paid in pesos).
This is the first of a series of articles we expect to release for a better comprehension of the booming adoption of cryptocurrencies in Argentina, in the region and in the rest of the world (independently from their valuation as an asset). This new technology has reported many benefits for financial, accounting, exchange and administrative uses and it is expected to expand in the coming years.
Diego J. Nunes
Lawyer
Estudio Nunes & Asoc.