30 Million Pesos Seized in Argentina Crypto Smuggling Crackdown

A massive operation involving raids in Mar del Plata and Bahía Blanca has led to the seizure of over 30 million pesos ($180,000) and $19,000 last week in Argentina.

This incident highlights tensions between Argentina’s growing interest in cryptocurrency and its strict economic controls. The operation targeted a suspected money laundering and smuggling ring that uses crypto investments as a cover.

Personnel from Afip-Aduana and Prefectura Naval Argentina conducted the raids under orders from the Federal Court. Four suspects — two men and two women — were identified, according to authorities, as reported by La Capital.

The investigation began by order of Federal Court No. 1 in Bahía Blanca, led by Judge Walter López Da Silva, and Criminal and Correctional Secretariat No. 2, headed by Ivo Krasnopol Ceballos. Officials targeted five homes in Bahía Blanca and one apartment in Mar del Plata. They also seized a car.

Among items confiscated in the Argentina crypto smuggling crackdown were electronic devices, relevant documents tied to a corporation, clothing, and money — including a check for over two million pesos and cash worth more than 29 million pesos. The authorities also discovered over $19,000 in cash. The operation involved Customs-Afip staff and the General Tax Directorate (DGI), executed by multiple branches of Prefectura Naval Argentina.

Argentina’s Economic Instability Fuels Stablecoin Surge

Argentina has seen a surge in cryptocurrency adoption amid its financial crisis, with many citizens turning to digital currencies as a hedge against inflation and currency controls. However, this trend collides with the government’s tight import and economic regulations designed to prevent capital flight and maintain control over the peso.

As per a Financial Times report, Argentina is primed for cryptocurrency disruption. Years of mistrust in the banking system, soaring inflation, and strict limits on converting pesos into more stable currencies like the U.S. dollar have driven more savers to turn to cryptocurrency.

Last year a Chainalysis report noted that the stablecoin USDT is much higher in Argentina compared to other neighboring countries. The report said this could be due to the currency devaluation Argentina faced in 2023.

“As the Argentinian peso steadily lost value, crypto purchasing trended up, then really spiked in mid-April, around the time Argentina’s inflation crossed 100% for the first time in three decades. We also see a small dropoff in crypto purchasing starting in September, soon after the peso’s value stabilized,” it added.

Argentina also made the headlines recently for being one of the first countries in the world to introduce blockchain technology to its high school education curriculum.

Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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