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The Central Bank of Argentina (BCRA) has opened an investigation into nine fintech companies for allegedly offering unauthorized financial intermediation through crypto assets.
Companies convert deposits into cryptoassets, especially cryptocurrencies, the BCRA said in a statement on Friday. These crypto-assets are used to finance both investments and consumer loans, offering a profit as a counterpart.
The BCRA did not name the companies under investigation. A BCRA spokesperson told CoinDesk that the central bank is in the process of briefing companies, a process it will complete by the end of next week.
The spokesperson said the companies involved are those that offer users an interest in depositing cryptocurrencies.
Through the Financial Entities Act, the BCRA has the power to demand information when a person or company is suspected of performing financial intermediation tasks, according to the central bank statement.
The entity can order the immediate and permanent cessation of activity and apply sanctions.
If investigations find evidence of unauthorized financial intermediation, the BCRA will file a criminal complaint under Article 310 of Argentina’s Criminal Code, which provides for prison terms of one to four years, fines of two to six times the value of transactions and ban from practicing in Argentina for up to six years.
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