Binance has expanded its global presence by launching cryptocurrency exchange services in Argentina, a country that is struggling with excessive inflation, according to Reuters. The launch will allow Argentinians to purchase and sell cryptocurrencies directly with local pesos, which can be deposited to Binance via a local partner.
However, the Argentinan market is not entirely new for Binance. The crypto exchange already offers peer-to-peer services, acting as an intermediary to match buyers and sellers.
The economy of Argentina is in shambles now as the inflation in the country went past 100 percent last February. It was the first time inflation in the South American country hit such levels since the hyperinflation in the early 1990s.
The economic crisis has been in the grip of the country for a while now, as it witnessed the succession of three economy ministers one after another last summer. Argentinians are also protesting against the government for its failure to tackle inflation.
The government also imposed heavy restrictions on purchasing forex for residents, who can only procure up to $200 monthly from banks. This creates a black forex market where a premium ‘blue dollar’ exchange rate prevails.
The devaluing pesos and struggles in the forex market also drove cryptocurrency adoption in Argentina higher. According to Chainalysis, Argentina was among the top 15 counties regarding crypto adoption last year.
A Strategic Move by Binance
Binance’s latest entrance into the Argentinian market is strategic. The exchange’s Latam Director, Maximiliano Hinz, said: “This launch has to do with the public demand that exists here.”
Hinz also added that Argentina had become a key market for Binance.
Argentina does not have any crypto-specific rules in place. However, the country’s central bank issued multiple warnings against the risks of cryptocurrencies earlier. The financial market regulator in the country is also supporting a bill for making a registry of providers offering cryptocurrency services.
Meanwhile, Binance is also targeted by US prosecutors. The exchange and its CEO, Changpeng Zhao, face a lawsuit in the US for alleged violation of ‘numerous’ regulations. However, Zhao called the lawsuit “unexpected and disappointing” with “an incomplete recitation of facts.”
Binance has expanded its global presence by launching cryptocurrency exchange services in Argentina, a country that is struggling with excessive…
