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The Central Bank of Argentina (BCRA) officially announced its decision on its website on May 5 that they will be prohibiting private banks from offering Crypto services to customers in the country. The Board of Directors of the BCRA took this decision to stop the risks arising from the use of Different crypto assets. This could harm and can be a threat to financial services and the country\s financial system.

BCRA has listed some risks which are associated with crypto services being provided by the private banks:

  • Providing these kinds of crypto operations could lead to high volatility and can give rise to the dangers of different operational disruptions and cyberattacks.
  •  Rest of the risks are money laundering, terrorism of financing, and potential non-compliance with exchange regulations, in the absence of safeguards.
  • Along with the full information that current regulations provide to users of financial services and the cross-border nature of transactions.
Argentina's Central Bank raises interest rates amid growing inflation —  MercoPress

Some of the details were also provided by the bank in the official documents:

  • The banks that are not associated with the government and are authorized with BCRA will not be able to conduct or facilitate their customers in doing their business with digital assets, including crypto assets.

These encompass operations whose yields are decided primarily based totally on the versions that they register:

  • Besides many players involved in crypto operations in Argentina, there could be many who are not established in the country and are not abiding by the general regulations and these will also be disallowed to provide services
  • The bank has described digital assets as the representation of values that are stored and transferred electronically using DLT (Distributed Ledger Technology) or something similar technology.
Regulating the no man's coin – the rapid rise of cryptocurrencies has  regulators scratching their heads | UN DESA | United Nations Department of  Economic and Social Affairs

In current times, Argentina banks have commenced supplying crypto funding offerings to their clients. Banco Galicia, one of the most important non-public banks in Argentina has become the primary financial institution to introduce cryptocurrency buying and selling as part of its offerings supplied to the customers. The crucial authorities approved, digital-economic institution, Brubank additionally observed the in shape and commenced supplying crypto buy offerings even in its app.

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