Central Bank Of Argentina Blocks Financial Institutions From Offering Cryptocurrency

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Digital assets in Argentina are defined as “a digital representation of value or rights. Transferred and stored electronically using Distributed Ledger Technology(DLT) or other similar technology according to the crypto regulations of Argentina. 

The two major banks of Argentina named Banco Galicia and digital bank Brubank have recently made an announcement regarding providing the crypto trading option for their precious clients on their banking website. 

In response to their announcement, The Central bank of Argentina (BCRA) made an announcement objecting that financial institutions can not enable their clients to carry out digital assets operations. As crypto-assets are not regulated in Argentina, the Central bank says that financial entities in the country can not allow any of such crypto facilities.

Also Read : Cryptocurrency Regulations in Argentina

Argentines are accepting crypto as it helps to save money during the bad time of high rate inflation in the county. Alongside, the president, Alberto Fernandez reinstated the currency controls in 2019. 

Unfortunately, the Argentinian government is planning to discourage the use of cryptocurrencies to prevent money laundering, disintermediation, informality, and in concern with other risks associated with virtual assets, to strengthen Argentina’s financial resilience.

In action to this, Argentina’s government has signed discouraging the use of cryptocurrency dealing with nearly $45 billion debt restructuring with the International Monetary Fund (IMF).