Argentina's regulators are zeroing in on unofficial Worldcoin resellers, who have been capitalizing on the project's immense popularity in the country. These resellers, who offer cash or bank deposits in exchange for handing over control of Worldcoin wallets, are allegedly charging commission fees of up to 50% of the token value. The resellers are often aided by "coleros," individuals who earn money by waiting in lines to sell their spot to others.

A Growing Concern

The National Securities Commission (CNV) and the Federal Administration of Public Revenues (AFIP) are scrutinizing these operations, which they believe should be conducted through the financial system. The conversion of Worldcoin tokens into fiat pesos is considered a business transaction under Argentinian law, and tax bodies are taking notice. If resellers deal with hundreds of users, they can be legally obligated to pay taxes, and the CNV could even get involved if it suspects unofficial crypto exchanges are being operated.

Worldcoin's Growing Popularity

Worldcoin has seen phenomenal popularity in Argentina, with long lines forming outside iris-scanning centers in many cities. Many people are eager to claim their "free" WLD tokens, but rather than holding onto them or trading them on regulated exchanges, some are opting to sell them to resellers. This has led to a thriving black market, with resellers and coleros working together to convince people to use their services.

Regulatory Efforts

In response to growing concerns, Tools for Humanity CEO Alex Blania recently visited Argentina to speak with top government officials. This follows calls from lawmakers to police Worldcoin and the introduction of bills that would force the project to abide by new privacy and data-related restrictions. Regulatory bodies have also launched probes into Worldcoin's operations in the country, including an investigation by Argentina's data protection agency in January.

Conclusion

As Worldcoin's popularity continues to grow in Argentina, regulators are taking steps to ensure that the project is operated transparently and in compliance with local laws. The crackdown on resellers and coleros is a significant step in this direction, as it aims to prevent unofficial business activities and protect the rights of users.