Argentina regulators are focusing their attention on resellers of Worldcoin, as they continue to scrutinize the project in the Latin American nation. According to a report from iPro Up, some Argentines have taken on the role of unofficial Worldcoin resellers in order to make extra money. However, this has put them in the sights of regulatory bodies such as the National Securities Commission (CNV) and the Federal Administration of Public Revenues (AFIP).
Worldcoin has gained significant popularity in Argentina recently, leading to long queues forming outside Worldcoin iris-scanning centers in various cities as people rush to claim their “free” WLD tokens. Instead of holding onto these tokens or trading them on regulated crypto exchanges, some Argentines are opting to exchange their tokens for cash. This has given rise to resellers who offer cash or bank deposits to new WLD holders in exchange for control of their crypto wallets.
These resellers often charge high commission fees, sometimes up to 50% of the token value, for their services. They are said to collaborate with “coleros,” individuals who earn money by waiting in lines to sell their spot to others. These coleros assist resellers in convincing people to use their services at the iris-scanning centers.
While these operations are not illegal, they are expected to go through the financial system according to the Argentinian legal system. The conversion of tokens into fiat pesos is considered a business transaction, which is why resellers are attracting the attention of regulatory bodies. Tax officers may intervene if they believe a person is running an unofficial business and require them to pay taxes.
The CNV may step in if they suspect resellers are operating unofficial crypto exchanges, especially in cases where they deal with a large number of users. Domestic crypto exchanges in Argentina are now required to obtain operating permits from the CNV and follow strict KYC protocols.
The popularity of Worldcoin has raised concerns among Argentinian regulators and lawmakers, particularly regarding privacy issues. In an effort to address these concerns, Tools for Humanity CEO Alex Blania visited Argentina last month to speak with government officials. Tools for Humanity operates Worldcoin.
In response to calls from MPs to regulate Worldcoin, lawmakers have introduced bills that would impose new privacy and data-related restrictions on the project if passed. Regulatory bodies have also initiated investigations into Worldcoin’s operations in Argentina, with the data protection agency launching an investigation earlier this year.