The Central Bank of Argentina (BCRA) restricted crypto traders’ access to the unified foreign-exchange market and to buying US dollars at the official rate.
The ban covers all those who purchased bitcoin or other digital assets with Argentine pesos in the last 90 days.
The initiative aims to curb capital outflows from the country via cryptocurrencies and the US dollar.
Decrypt reports that Argentina is tightening currency controls and raising the policy rate to rein in inflation. According to BCRA data for June 2022, annual inflation in the country stood at 64%.
In May, one of Argentina’s largest banks, Banco Galicia — opened clients’ access to buying bitcoin, Ethereum, XRP and the stablecoin USDC. Brubank also announced the launch of its cryptocurrency service.
In response, the BCRA barred local financial institutions from offering clients services related to digital assets. The regulator’s restriction also extends to cryptocurrency derivatives.
In early July, the unexpected resignation of Argentina’s economy minister Martín Guzmán caused a surge in demand for stablecoins on local bitcoin exchanges. The departure could threaten further economic destabilisation.
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