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Binance, the world’s largest cryptocurrency exchange by volume, announced that it has started allowing crypto purchases for its users in Argentina with their local currency, Peso.
The new service allows Binance customers in the inflation-hit country to convert their local currency directly into cryptocurrencies through a local partner. Previously, Binance had only operated in Argentina as an intermediary platform to match buyers and sellers.
The move is part of Binance’s expansion into South America, where cryptocurrencies have seen a lot of interest and adoption in recent years.
“We are excited about this launch. At Binance, the focus is always on our clients, and we are committed to providing them with the smoothest, most secure and optimized experience. We understand the peculiarities of each country in the region. This new service will allow us to continue working for financial inclusion,” said Maximiliano Hinz, director of Binance for Latam.
The move comes nearly six months after Binance launched its crypto debit card in Argentina, which was the first country in Latin America to have the product thanks to a partnership with Mastercard.
Binance lets clients top-up their card with funds through the Binance Card App and then convert their crypto holdings to fiat within seconds, which can be spent at over 90 million Mastercard merchants worldwide.
Latin America ranks fifth in the world for cryptocurrency adoption and consistently captures between 8% and 10% of global cryptocurrency activity. The region saw a ten-fold increase in the use of cryptocurrencies over the last two years. Leading the way are Venezuela and Argentina, ranking seventh and tenth, respectively, in the Global Crypto Adoption Index published by Chainalysis.
Argentina’s approach to cryptocurrency regulation, however, has been complex and constantly evolving. While the government seems interested in the potential benefits of blockchain technology, it has also been wary of the risks and has implemented a number of regulations to address these concerns.
In 2019, the country introduced new regulations requiring cryptocurrency exchanges to register with the Financial Information Unit (FIU) and provide information about their customers and transactions. The regulations also require exchanges to implement anti-money laundering and counter-terrorism financing measures and report any suspicious activities to the FIU.
Despite these efforts, there has been criticism that Argentina’s cryptocurrency regulations are still too vague and do not provide enough clarity for businesses and investors. There have also been concerns that the regulations may be overly burdensome for smaller businesses and may stifle innovation in the industry.
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