Argentina's Central Bank Bans Financial Institutions From Offering Bitcoin
"The monetary authority banned operations that allow bank clients to purchase crypto, just days after two large institutions announced they would let clients buy Bitcoin and other digital currencies."
- "The central bank banned [Bitcoin] operations for the entire financial sector, saying it aims to “mitigate the risks” involved in transactions of digital assets.” Those include high volatility, cyberattacks and money laundering, according to a statement."
- "The ban also includes assets whose returns are determined by the fluctuations of cryptocurrencies."
- The measure will force many popular fintech apps in Argentina to remove various Bitcoin operations from their platforms.
- "Earlier this week, Banco Galicia, the country’s largest private bank by market value, and digital bank Brubank announced they would allow their customers to purchase crypto including Bitcoin, Ether and USDC."
- "Financial institutions should focus on “financing investment, production and consumption of goods and services,” the bank added.
- Argentines are embracing cryptocurrencies at a quick pace as recurring currency crises and inflation running as high as 100% annually.
- The country is among the world’s top 15 countries leading in the adoption of crypto, according to surveillance firm Chainalysis.
- Peer-to-peer marketplaces and interested persons remain unaffected by the ban, specified the central bank.