The Central Bank of Argentina Issues a Ban Against Cryptocurrency Trading in the Country

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A recent announcement issued by the Central Bank of Argentina gave the citizens an indication of the organisation’s stance on cryptocurrency trading.  With the increased awareness surrounding the trading of digital currencies across the globe, several governments are attempting to obtain methods that regulate the trade, thus protecting the rights of consumers. The central bank of Argentina is among the institutions and authorities that prohibit the trade of crypto assets.

The Banco de la República Argentina (BCRA) ordered the financial institutions in the country to stop any cryptocurrency trading that occurs in the country. The bank further banned the inception of crypto trading or representing their consumers in any crypto transaction. The bank issued this announcement on the 5th of May 2022.

Reasons cited by the Argentinian Central Bank for banning crypto trading

A representative of the Bank stated that it intends to aggravate the risks associated with facilitating the trading of crypto assets and other new forms of financial payments. The representative further stated that the bank’s main priority was to ensure that the financial institutions aim to develop further investment and market the consumption of products and services affected by the domestic pressure and export services.

The announcement follows a warning by the Central Bank, following a May 2021 press release in which it cautioned citizens on the possible risks associated with trading crypto assets. In May 2021, the bank made a warning in collaboration with Argentina’s National Securities Commission and further suggested various methods by which individuals can lessen the pressure involved with volatile consumers and investors.

The mindful advance made by the bank amid the assimilation of the currency in Argentina

The recent implementation follows a few months after President Alberto Fernández, Argentina’s President, publicly backed up the trading of cryptocurrencies. However, President Fernández further addressed the backlash accompanied by the various disadvantages of the currency, including the currency’s familiarity and vulnerability, among others.

It is also noteworthy that the country possesses at least 14 Bitcoin ATMs where the consumers or investors can purchase or dispose of the digital currency. However, the ATMs are mostly located in one city identified by various publications as Buenos Aires.

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