Argentina Axes Libra Probe Unit After Just 90 Days—Regulatory Theater or Genuine Retreat?

Buenos Aires pulls the plug on its high-profile crypto oversight task force—barely three months after launch. Was it premature or just political posturing?

Sources suggest the 'special investigation unit' never moved beyond drafting press releases. Meanwhile, stablecoins keep flowing—because bureaucracy never outpaces innovation.

Another case of governments playing whack-a-mole with decentralized tech? Or just Argentina doing Argentina things (between inflation fights and peso collapses)? Either way—regulators just got schooled on crypto's first law: adapt or die.

Bonus jab: At least they didn't spend taxpayer pesos on a metaverse office.

Government shuts down Libra investigation unit after only 3 months

The Libra fallout forced the Argentine government to quickly form a special task force, called the Investigative Task Force (UTI), to review the crypto drama.

The unit was created by presidential decree, with signatures from both Javier and Justice Minister Mariano Cúneo Libarona. Its job was to investigate whether there were any irregularities in how Libra was promoted, who profited from it, and whether any laws were broken.

The UTI also had the power to request documents from public and international bodies, respond to court demands, and report any attempts to cover up evidence.

But three months after its creation, the UTI was dismantled. A formal decree, signed again by Javier and Mariano, stated that the unit “has fulfilled the functions assigned to it,” with no further explanation given.

That MOVE closed the executive branch’s internal inquiry. The UTI never publicly released any findings before it was shut down. The decision came after public anger exploded, especially from crypto investors who believed the token had government backing. Some had assumed Libra was Argentina’s new official crypto project. Instead, they were left holding bags of a worthless token.

Reports later revealed that only a few wallets controlled most of the Libra supply. Those wallets were emptied shortly after Javier’s post, triggering the crash and locking everyday Argentines into losses.

Retail investors flooded local regulators with complaints. They demanded answers about whether someone in the government had advance knowledge and made money while the public got wrecked.

The Libra controversy reached Argentina’s Congress too. In April, lawmakers formed a 28-member special investigative committee to look into the case further, but no formal proceedings have begun.

Despite being summoned to appear on May 14, neither Mariano Cúneo Libarona nor Economy Minister Luis Caputo showed up. Their absence has drawn criticism from opposition politicians and some investors who say the government is dodging responsibility.

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