It became known why there are some virtual wallets that are outside the scrutiny of the ARCA regulatory body. Find out what they are and the reasons why they are not in the spotlight.
The Customs Collection and Control Agency (ARCA)which replaced the AFIP, applies a rigorous supervision over digital wallets local. However, some international wallets such as PayPal and Wise may present themselves as attractive options for those who prioritize greater privacy in their financial operations.
Currently with the wallets that ARCA regulates you are forced to corroborate expenses greater than $700,000 thousand per month Since with this measure what they seek to achieve is to avoid money laundering and guarantee compliance with tax obligations.
For now ARCA primarily regulates local financial institutions and fintech companies incorporated within the country, leaving international platforms such as PayPal under the jurisdiction of their countries of origin. However, this does not mean that the entity will soon include these wallets.
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Why ARCA doesn’t regulate PayPal
ARCA does not directly regulate PayPal because this platform operates under a different business model that of traditional financial institutions that are usually supervised by local regulatory bodies.
It is also important to consider that PayPal is not a bankis a financial technology (fintech) company that acts as an intermediary in digital transactions. It does not grant loans or operations with money deposits in the traditional sense, so it is not subject to the same regulations as banking entities.
What are the wallets regulated by the agency?
Currently ARCA regulates the following virtual wallets:
- Payment Market
- Uala
- Orange
- Personal Pay
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
