The Central Bank of Argentina said in a statement that payment platforms are now prohibited from offering digital assets such as Bitcoin (BTC) to their customers.
Argentina's Central Bank (BCRA) said it was because "to mitigate risks".
Numerous companies in the country, including fintech giant Ualá and online trading marketplace Mercado Libre, were offering their customers the opportunity to buy and sell cryptocurrencies.
Payments Companies Banned From Selling Bitcoin and Cryptocurrency In Argentina
The statement released by the Central Bank of Argentina included the following statements:
“Payment service providers offering payment accounts may not transact or mediate their customers with digital assets, including crypto-assets that are not regulated by the competent national authority and not authorized by the Central Bank of the Republic of Argentina (BCRA).
The Central Bank did not explain the ban in the announcement, except to protect customers.
With this development, major platforms, including Mercado Libre, the country's Amazon, will no longer provide Bitcoin purchasing services to their customers.
In the country, which was struggling with a very high inflation, many people were trying to protect themselves from inflation by using digital currencies such as Bitcoin. However, Argentina is one of the countries that have the most US dollars under the pillow among the people due to inflation.
*Not investment advice.