Crypto exchange Binance expands in Argentina

Crypto exchange Binance, which US regulators sued, will expand its services in inflation-plagued Argentina, allowing users to buy and sell digital currencies directly with local pesos.

The move will allow Argentines to transfer pesos to a Binance account through a local partner, which can then be used to buy cryptocurrencies.

Until now, Binance has only operated as an intermediary platform in Argentina to bring crypto buyers and sellers together.

“This launch has to do with the public demand that exists here,” Maximiliano Hinz, director for Binance in the Southern Cone, told Reuters in a written statement on Tuesday (4), adding that Argentina is a key market for the exchange.

According to him, domestic users can transfer pesos to a Binance account, and their balance will be displayed there in local currency, which can then be used to buy cryptocurrencies.

The expansion in Argentina, where annual inflation of more than 100% has made cryptocurrencies more attractive despite their volatility and risk, comes when Binance is undergoing regulatory scrutiny in the US and elsewhere.

The US Commodity Futures Trading Commission (CFTC) late last month sued the company and CEO Changpeng Zhao for operating an “illegal” exchange and a “sham compliance program.

Zhao, a Chinese-born billionaire who moved to Canada at the age of 12, called the CFTC’s complaint “unexpected and disappointing.”

As Binance has come under increasing scrutiny from regulators, the exchange has lost some banking partners for so-called on-ramp and off-ramp transactions involving fiat currencies.

Paysafe, which processed payments in sterling, was pulled out in March.

Argentina does not regulate crypto exchanges, but the central bank has repeatedly warned about the risks of cryptocurrencies.

Market regulator CNV is backing a bill to create a registry for virtual asset providers.

Argentina, which has strict capital controls that limit currency exchanges, was among the top 15 countries worldwide for crypto adoption last year, according to the Chainalysis Index.

“Argentine users know the crypto world,” Hinz said.

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