Argentina’s regulators are targeting resellers of Worldcoin in an effort to crack down on unauthorized activities surrounding the popular cryptocurrency project in the Latin American nation. According to a report from iPro Up, some Argentinians have taken on the role of unofficial Worldcoin resellers to earn extra income, drawing the attention of regulatory bodies such as the National Securities Commission (CNV) and the Federal Administration of Public Revenues (AFIP).
Worldcoin has seen a surge in popularity in Argentina, with long queues forming outside iris-scanning centers in various cities as individuals rush to claim their free WLD tokens. Instead of holding onto these tokens or trading them on regulated crypto exchanges, some Argentinians are opting to exchange them for cash, leading to the emergence of resellers who offer cash or bank deposits in exchange for control of crypto wallets.
These resellers often charge high commission fees, sometimes up to 50% of the token value, for their services. Working in collaboration with coleros, individuals who earn money by waiting in lines to sell their spots to others, the resellers are able to convince people to use their services at the iris-scanning centers.
While these operations are not illegal, they should ideally go through the financial system for proper conversion of tokens into fiat pesos. Individuals involved in these transactions may face scrutiny from tax bodies and regulators if they are deemed to be running an unofficial business. The CNV may step in if resellers are perceived to be operating unofficial crypto exchanges, as domestic exchanges are required to obtain permits and adhere to strict KYC protocols.
The growing popularity of Worldcoin has raised concerns among Argentinian regulators and lawmakers regarding privacy issues. Tools for Humanity, the operator of Worldcoin, has been working to ease regulators’ worries, with CEO Alex Blania meeting with government officials to address their concerns. Lawmakers have also proposed bills to impose new privacy and data-related restrictions on Worldcoin, while regulatory bodies have initiated investigations into the project’s operations in the country.
Overall, the increased scrutiny on Worldcoin resellers in Argentina underscores the importance of compliance with regulatory requirements in the cryptocurrency space, as authorities seek to ensure the proper functioning of financial systems and protect the interests of investors and consumers.
