- Thus, the Central Bank is trying to stop the growing adoption of digital assets in the country
- Their popularity has skyrocketed amid hyperinflation.
- The crypto lobby urges the authorities to reconsider the decision as it isolates the country from the promising sector
Last week, the Central Bank of Argentina (BCRA) published new regulation regarding crypto assets. The regulator has banned payment platform operators from offering cryptocurrency trading because it is not regulated in the regulatory field.
The central bank made this decision in an effort to “reduce risks” for retail investors:
“Service providers cannot perform or facilitate cryptocurrency transactions through their applications. This asset class is not regulated by the competent national authority and is not listed by the BCRA.”
The change in the policy of the regulator will affect not only payment, but also trading platforms. Now online stores and retailers, for example, will not be able to accept cryptocurrency.
Members of the local lobby Fintech Chamber of Argentina called on the government to reconsider this decision. In their opinion, the policy of the Central Bank only limits the country’s access to promising technology.
Obviously, in this way the regulator is trying to stop the spread of cryptocurrency in the country. The adoption rate of BTC and a number of other assets in Argentina has increased significantly against the backdrop of hyperinflation.
In March, this figure exceeded 104% year on year. Ordinary Argentines see cryptocurrency as an opportunity to save their savings. But since this sector is not regulated, all financial flows actually pass outside the jurisdiction of the Central Bank. Recall that last year, Binance, together with Master Card, issued a bank card for Argentina. With its help, residents can convert fiat into “crypto” as simply and quickly as possible.