Argentina: Central Bank Moves Against Crypto Services

Argentina: Central Bank Moves Against Crypto Services

Last Thursday the Argentinian central bank moved against cryptocurrency-based transactions stating that the nation does not encourage nor will it aid users in any crypto-related transactions and operations. The bank also highlighted that crypto assets are currently not bound by any regulatory frameworks in the country. But most importantly, the institution prohibits businesses from offering digital assets services.

The announcement came two days after two local private banks confirmed their crypto services to the public. Banco Galicia – the largest private lender in the country- and Brubank- a relatively young bank that launched in 2017- are the two culprits in question.

The two banks were ordered to cease all crypto services by last Friday according to the Coindesk news outlet.

In spite these radical changes, Argentina has seen a huge move toward crypto adoption, a spike greatly motivated by a constant inflation. Yet, at the same time the central bank never backed down from its strict stance on crypto regulations, regularly issuing warnings against crypto investments.

This position was exemplified in last year’s $45 billion reconstruction deal the bank signed with the International Monetary Fund which dealt a heavy blow to crypto usage under the pretext that crypto assets are greatly involved in money laundering.

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