Argentina’s Central Bank prohibits local institutions from providing cryptocurrency services

Argentinian Central Bank banned domestic financial institutions from trading cryptocurrencies. This comes only days after two of the largest local banks, Banco Galicia and Brubank, confirmed that they were allowing customers to purchase digital assets through their website.

Central bank blocks crypto-offerings in Argentina

The largest private bank in Argentina, Banco Galicia, and digital bank, Brubank, partnered with the Lirium cryptocurrency wallet to offer their clients cryptocurrency services. Both institutions noted that there has been a high interest in digital assets, especially from younger generations.

However, Argentina’s central bank has stated that regional monetary institutions are not permitted to offer these services due to the lack of appropriate regulations.

Board of Directors of the BCRA has adopted a measure designed to mitigate the risk associated with operations involving assets that might be generated for users of financial services and for the entire financial system.

Several central banks have mentioned some of the most frequently cited risks related to digital assets. The BCRA stated that bitcoin and altcoins are characterized by high volatility, which can be used for money laundering and terrorist financing.

Most cryptocurrencies are subject to strong price fluctuations but it can be debated whether they are easily manipulated by criminals. For example, the bitcoin blockchain is completely transparent. All transaction details are recorded in a digital ledger and are visible to all participants in the network.

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.