Fun

Central Bank of Argentina Bans Private Banks From Offering Cryptocurrency Services

News Feed - 2022-05-08 01:05:02

Central Bank of Argentina Bans Private Banks From Offering Cryptocurrency Services


The Central Bank of Argentina has taken steps to ban private banks from offering cryptocurrency services to customers in the country. The action comes after two banks had started offering cryptocurrency purchasing services from their apps. The measure is said to be directed at mitigating risks associated with cryptocurrency assets. Central Bank of Argentina Closes Banking Crypto Offers


The Central Bank of Argentina is tightening its permissive attitude when it comes to the links between cryptocurrency assets and private banks. The institution has issued a document that deals with the offering of cryptocurrency purchasing and trading services through these institutions, banning them from facilitating such transactions for Argentinian citizens.


The document explains:


Financial entities may not carry out or facilitate their clients to carry out operations with digital assets, including crypto assets and those whose yields are determined based on the variations that they register, that are not regulated by the national authority and authorized by the Central Bank of Argentina (BCRA).


Furthermore, the institution argues that the objective behind this measure is to mitigate the risk that the users and financial institutions face when using these assets as investment vehicles. This announcement comes after two private banks in the country, Banco Galicia and Brubank, had announced they were introducing cryptocurrencies as part of their financial services offerings to their customers. Other Motives


However, according to some local media reports, there may be other motives behind this prohibition by the central bank. The organizations reportedly already consulted the central bank in private, who gave them an approbatory nod, owing to the fact that banks operating with cryptocurrency assets is unregulated, and thus not illegal.


Per financial sources, the cryptocurrency operations might also cause a demand in dollars that would increase the breach between the official dollar price and the dollar on the black market, called the “blue” dollar. Argentina has exchange controls, and this could have influenced the decision to stop these operations before they became more important in the bigger economic picture.


The difference between the official dollar and the blue dollar has remained the same, with the latter being about 80% more expensive than the former, meaning that the volumes traded during these days did not exert any influence on this exchange rate.


Another possible reason for this measure has to do with the deal that Argentina inked with the International Monetary Fund to pay its debt, which includes a requirement stating the country will disincentivize the use of cryptocurrencies, and allowing private banks to offer these services would be contrary to this. Tags in this story Argentina, banco galicia, blue dollar, brubank, central bank of argetina, cryptocurrency services, inflation, private banks


What do you think about the resolution issued by the Central Bank of Argentina that bans private banks from offering cryptocurrency to their customers? Tell us in the comments section below. Sergio Goschenko


Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved. US Treasury Sanctions First Crypto Mixer REGULATION | 1 hour ago US Court Fines Bitmex’s Founders $30 Million for Operating Illegal Crypto Platform REGULATION | 19 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleBiggest Movers: LUNA Falls to 6-Week Low, as ALGO Surges 15% on Saturday Next articleAnchor Protocol’s Earn Rate Adjusts for the First Time, From 19.4 to 18% APY Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItDraft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament


A bill updating Russia’s tax law to incorporate provisions pertaining to cryptocurrencies has been filed with the State Duma, the lower house of parliament. The legislation is tailored to regulate the taxation of sales and profits in the country’s market ... read more.Argentinian Securities Regulator Launches Innovation Hub to Discuss Regulated Crypto Investments Goldman Predicts US Recession Odds at 35% in 2 Years, John Mauldin Wouldn"t Be Surprised if Stocks Fell 40% Australia to List Bitcoin ETF After 4 Clearinghouse Participants Commit to Meet Stringent Margin Terms Microbt Reveals Latest Bitcoin Mining Rigs — Machines Produce up to 126 TH/s With Custom 5nm Chip Design

News Feed

Canada Has Approved Two Bitcoin ETFs — First One Starts Trading Today
Canada Has Approved Two Bitcoin ETFs — First One Starts Trading Today Two bitcoin exchange-traded funds (ETFs) have been approved in Canada. Evolve Bitcoin ETF
Price analysis 8/21: BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA, AVAX, SHIB
Rakesh Upadhyay5 hours agoPrice analysis 8/21: BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA, AVAX, SHIBThe spot Bitcoin ETFs have continued to attract inflows, suggesting that the long-term bullish view remains intact.2978 To
Fintech Study Estimates 4.4 Billion Global Users Will Adopt Mobile Wallets by 2024
Fintech Study Estimates 4.4 Billion Global Users Will Adopt Mobile Wallets by 2024 According to a recently published study by Merchant Machine, mobile wallets are predicted to have
Solana Triggers Long Thesis After Pushing Above $125 – Start Of A Bigger Rally?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Bitfinex Executives Deny Allegations of Issuing USDT to Pump BTC – “Tether Backed by Cash Assets and a Loan”
Bitfinex Executives Deny Allegations of Issuing USDT to Pump BTC – "Tether Backed by Cash Assets and a Loan" Bitfinex general counsel Stuart Hoegner has dismi
Volt Inu is Ready to Launch VoltiEco the AI-Powered Ecosystem
Volt Inu is Ready to Launch VoltiEco the AI-Powered Ecosystem press release PRESS RELEASE.Volt Inuannounced on Twitteron April 18, 2023, that it would launch VoltiEco within the fol
Turner Wright8 hours agoParliamentary committee calls for shutdown of Worldcoin in KenyaThe committee’s recommendations included having the Kenyan government consider implementing a comprehensive framework for digital
Manitoba Halts New Crypto Mining Projects Due to Expected High Energy Demand
Manitoba Halts New Crypto Mining Projects Due to Expected High Energy Demand Authorities in Manitoba are temporarily suspending the connection of new crypto mining facilities to th
SuperRare Expands into Bitcoin Ordinals, Unveils 'No Brainers' NFT Collection
Ezra Reguerra13 minutes agoSuperRare Expands into Bitcoin Ordinals, Unveils "No Brainers" NFT CollectionSuperRare Labs" Zack Yanger said being able to help artists connect with a new class of collectors is “a massive w
RBB LAB Uses NFT to Serve Alberto De Luigi and Andreas Kohl Summons
RBB LAB Uses NFT to Serve Alberto De Luigi and Andreas Kohl Summons press release PRESS RELEASE. San Marino, Dec 5, 2022 — RBB Lab, a technology development firm based in the Repu
Nigerian SEC Announces New Rules Governing Issuance of Digital Assets
Nigerian SEC Announces New Rules Governing Issuance of Digital Assets The Nigerian securities regulator has announced new rules that govern the issuing of digital assets. The new r
Mining City: A New Opportunity for the New Year
Mining City: A New Opportunity for the New Year Mining City’s growth throughout 2020 has been significant. With an easy-to-use website, thousands of commun