Over the past few years, Argentina has grown to become a prominent player in crypto, attracting hundreds of blockchain-based businesses. Chainalysis data shows that the South American country has witnessed massive crypto adoption over the last two years as its currency continues to struggle.
However, some Argentinians are reluctant to explore the crypto world because the government has yet to define clear regulations protecting them. This article takes a look at Argentina’s crypto regulatory environment. Read on to find out more.
Is Cryptocurrency Legal in Argentina?
Although Argentina’s government doesn’t recognize crypto as a legal tender, it does not restrict its citizens from buying digital assets. Notably, the sitting president Javier Milei called Argentina’s Central Bank a scam in 2023 for allegedly using the traditional financial system to harass Argentinians with inflationary tax. He touted Bitcoin as the solution. His controversial remarks generated massive interest in crypto among Argentine citizens. Today, the Crypto Council for Innovation says nearly one-third of Argentinians use cryptocurrencies for their daily transactions.
On December 21, 2023, Diana Mondino, Argentina’s foreign affairs minister, announced that anyone in the South American country could enter legally binding contracts using Bitcoin, fueling broader crypto acceptance across the nation.
Crypto Adoption in Argentina
The inflation rate for Argentina’s currency, peso, has grown significantly since 2010. As of January 2024, the year-on-year inflation rate stood at 253%. As such, most Argentinians have turned to digital currencies to shield them against inflation. A study conducted by America’s Market Intelligence in 2023 showed that 15% of adult Argentinians buy cryptocurrencies regularly. Moreover, the research found that 97% of Argentine citizens know about blockchain and crypto assets.
The growing crypto adoption in Argentina is reflected in cryptocurrency transaction volume. The country posted $35.3 billion in transaction volume during the first quarter of 2024.
Ways to Buy Cryptocurrencies in Argentina
As mentioned earlier, several crypto companies have entered Argentina, among them being peer-to-peer trading platforms and exchanges, which allow citizens to buy cryptocurrencies like Bitcoin. These are the platforms you can use to buy crypto while in Argentina:
Centralized exchanges that allow Argentine citizens to trade cryptocurrencies include MEXC, Gate.io, Kraken, Binance, and OKX. Note that you must verify your identity before trading crypto on any of these exchanges.
Peer-to-Peer Platforms
These platforms enable Argentinians to trade with each other without intermediary involvement. They include Airtm and Paxful.
Are There Bitcoin ATMs in Argentina?
Yes! As of May 2024, there are ten Bitcoin ATMs in Argentina, most of which are located in Buenos Aries, the country’s capital city. These ATMs allow people to cash out their cryptocurrencies instantly.
Cryptocurrency Regulations in Argentina
As stated earlier, Argentina’s policymakers haven’t developed a comprehensive crypto regulatory framework. However, the National Blockchain Committee formed in early 2023 is still researching the appropriate ways to regulate the ever-changing cryptocurrency landscape.
When the committee was announced, the Argentine government acknowledged that blockchain was a great innovation that could potentially revolutionize public-sector processes.
In late 2023, the Buenos Aires government revealed its plans to operate validator nodes on Ethereum in an effort to showcase its commitment to adopting blockchain technology.
Meanwhile, Argentina’s Central Bank continues to prohibit banks from offering cryptocurrency services to customers or facilitating crypto trading until clear regulations are introduced.
How to Purchase Cryptocurrencies in Argentina
You now know the crypto regulatory status in Argentina. Do you still want to buy crypto while in this country? If so, follow the steps below:
1. Create an account with a reliable exchange. Beginners are advised to use Binance since its interface is user-friendly.
2. Verify your identity by submitting the required documents, which usually include a driver’s card or national identity card.
3. Fund your exchange account using the supported payment methods.
4. Purchase your ideal cryptocurrency on the spot market. If you do not want to be exposed to extreme price volatility, buy a stablecoin such as USDT.
Remember to adopt proper security measures like two-factor authentication and a strong password to protect your crypto.
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