On August 11,Argentina announced the result of presidential election. Fernandez, who was elected by former president, won an absolute advantage with 47% votes,and he is likely to win in October or November election.
Christina, the former president who elected Fernandez, was accused of being exposed to scandals of allegedly transferring profits to businesses and was prosecuted and punished for freezing assets.
Perhaps for this reason, Capital market generally believes that if Fernandez is elected, it will probably lead to a renewed expansion of Argentine budget, which will not only lead to currency devaluation, but also affect International Monetary Fund (IMF) economic assistance to Argentina.
After primary election results, Argentina’s legal currency Peso continued to decline. Yesterday,financial market collapsed. Main stock index fell by 38% and peso’s exchange rate against U.S. dollar fell by 37%.Therefore, the panic of asset depreciation has triggered people’s asset risk aversion.
Among them, a large amount of capital is exchanged for US dollars, some capital chooses to buy gold, and a small number of assets choose to trade bitcoin.
In past few years, whenever wars, hyperinflation, depreciation of exchange rates, or even economic repression by United States against other countries have taken place in the world, a large number of assets have entered digital currency market to seek preservation or appreciation, especially Bitcoin. Historical experience has proven that this is a better solution than buying gold, because Bitcoin has become world’s best investment product this year, with a return on assets of over 200%.
Unlike other countries and regions that are in the process of inflation and currency depreciation, a large amount of capital chooses to buy bitcoin. Argentina has little knowledge and understanding of digital currency. Most people have not heard of bitcoin or are unclear about its attributes.
According to a small local exchange, less than 50 BTC transactions have taken place in the past 24 hours, with a total volume of only 19 BTC transactions.
However, as asset risk aversion continues to heat up and peso continues to depreciate against US dollar, But price/performance ratio of dollar to seek a hedging strategy will gradually decrease. By then, there will be more safe-haven assets to choose gold or others, such as digital currency.For new investors entering the field of digital currency trading, currency fluctuation and exchange security are two things that need to be considered most.
AOFEX, a digital currency exchange known for security, reminds investors that investing in digital currency for the purpose of asset hedging and reserve value requires choosing mainstream currencies as much as possible to reduce risks.
As an integral part of digital currency field,exchange plays an important role in asset flow, value anchoring, and market trend indicator and so on, so it is very easy to become a target used by criminals, such as registering an account with false information ,and using such accounts to defraud, launder money, attack exchanges, etc.
These criminal acts not only endanger well-being society, but also have great harm to digital assets. Therefore, many countries, including International Financial Action Task Force on Money Laundering (FATF), are actively exploring and adopting reasonable regulatory measures for digital currency transactions.Although block chain has characteristics of decentralization and anonymity,those who use blockchain technology and digital certificates are protected and restricted by law.
Therefore, reasonable regulation can protect market healthy development.
Exchanges undertake the mission of protecting users’ assets security, cooperating with regulatory policies of their countries and regions, and abiding by international agreements to combat illegal and criminal acts.
For example, AOFEX, a digital currency exchange, has played an active role in the fields of transaction security, anti-fraud, international anti-money laundering and anti-terrorist financing. It has not only established a special anti-money laundering group, but also reached strategic cooperation with Slow Fog Technology, which is an expert in block chain security. It is based on traditional bank security risk control system. On this basis, the security level has been further strengthened.
Up to now,AOFEX Exchange has issued a series of anti-money laundering (AWL) safeguards, in line with new policy of International Financial Action Task Force against Money Laundering (FATF), which is the first to implement anti-money laundering KYC and large transaction analysis, successfully identifying and freezing a number of accounts suspected to be involved in money laundering.
After two months of experience and achievements, AOFEX Exchange will launch a new version of web page and APP in the near future, and all aspects will have more outstanding performance.
In the future, AOFEX will make unremitting efforts in security, financial crime prevention and other aspects to bring more safe and convenient professional services to investors.
News source: https://www.jinse.com/blockchain/438620.html