Crypto Exchange Binance Expanding Services in Argentina
Binance, a crypto exchange giant is expanding services in inflation-plagued Argentina
Binance, the crypto exchange that US regulators have sued, announced that it is expanding services in inflation-hit Argentina, allowing users to buy and sell digital currencies directly with local pesos. Argentines can now transfer pesos into a Binance account through a local partner, which can be used to purchase cryptocurrency.
Binance had previously only served as an intermediary platform in Argentina, connecting crypto buyers and sellers. “This launch is due to the public demand that exists here,” Maximiliano Hinz, Binance’s Southern Cone director, told Reuters in a written statement, adding that Argentina was a key market for the exchange. Local users, he said, could transfer pesos to a Binance account and see their balance reflected in local currency, which could then be used to buy cryptocurrency. The growth in Argentina, where annual inflation exceeds 100%, has made cryptocurrencies more appealing despite their volatility and risk, coming as Binance faces regulatory scrutiny in the United States and elsewhere.
The US Commodity Futures Trading Commission (CFTC) sued the firm and CEO Changpeng Zhao late last month for operating an “illegal” exchange and a “sham” compliance program, according to the regulator.
Zhao, a Chinese-born billionaire who moved to Canada when he was 12 years old, described the CFTC’s complaint as “unexpected and disappointing.” As regulators have increased their scrutiny of Binance, the exchange has lost some banking partners required for the so-called on-ramp, off-ramp transactions to fiat currencies. Paysafe, which accepted sterling payments, last withdrew in March. Argentina does not regulate cryptocurrency exchanges, but the central bank has repeatedly warned about the risks of cryptocurrencies, and Argentina’s markets regulator, CNV, is supporting a bill to create a registry of providers offering virtual assets.
According to the Chainalysis index, the South American country, which has strict capital controls that limit foreign currency exchange, was among the top 15 countries in the world for crypto adoption last year. “Argentine users are familiar with the crypto world,” Hinz said.
Binance’s entry into the Argentinian market could help to further drive the adoption of cryptocurrencies in the country. With the exchange’s global reputation and access to a range of cryptocurrencies, it could help to provide Argentinians with greater access to digital assets and more options for storing and growing their wealth.
In conclusion, Binance expansion into Argentina is a positive development for the crypto industry in the country. It could help to drive the adoption of cryptocurrencies and make them more accessible to people who are looking for alternative ways to store and grow their wealth. As Binance continues to expand its services globally, it could significantly impact the future of the crypto industry worldwide.
