Even as cryptocurrencies became more commonplace and authorities around the world sought ways to incorporate them into their country’s operations, Argentina’s central bank did the opposite, banning institutions under its wing from offering cryptoassets.
The central bank of that country has banned crypto trading!
Argentina’s Banco Central de la República Argentina (BCRA) has issued an order prohibiting financial institutions from conducting or facilitating transactions involving digital assets for their clients, the authority announced on its website on May 5.
Reasons behind the ban
According to the Central Bank of Argentina (BCRA):
“The measure ordered by the BCRA Board of Directors aims to reduce the risks associated with transactions with these assets that may be created for users of financial services and the financial system as a whole.”
As the central bank explained, “The activities of financial institutions should be aimed at financing the investment, production, marketing, consumption of goods and services required by both domestic demand and exports.”
On the other hand, he states that the problem with cryptocurrencies is:
“The different actors involved in operations with these assets may not be based in the country, which could lead to deviations from general regulations.”
It’s worth noting that in May 2021, the BCRA and the National Securities Commission (Comisión Nacional de Valores or CNV) issued a warning about the possible impacts and risks of crypto assets, along with a “cautious” recommendation.