Bann on crypto trading upon Argentine banks.
On May 6, 2022, the Argentine Central Bank (BCRA) issued communication 7506 (the Communication). The Communication banned regulated financial entities from trading, or enabling client’s transactions with, digital or crypto assets or assets which yield is based on crypto assets, that are not authorized by a federal competent authority nor by the BCRA. Given that no such authorization exists, the Communication implies a total ban of crypto trading by regulated financial entities. The BCRA stated that the Communication’s purpose was to mitigate the risks associated with such assets, both for clients and for the financial system.
Our law firm to expand its forex banking trade practice.
The increasing and complex foreign exchange control regulations implemented by the Argentine Central Bank (BCRA) are creating serious restrictions and risks for importers, exporters and holders of assets or debts abroad. Access to the official foreign exchange market for international financial and other transfers, prepayment of imports without timely presentation of appropriate import dispatch documentation to the banks, import quotas exceeded or wrongly used or computed, boarding permissions for exports without negotiation of foreign exchange in due course, exports pre-financings improperly settled from abroad and other forex transactions may result in administrative and/or judicial procedures whereunder huge fines and criminal liabilities are at stake.
Digital payments streamlined by Central Bank.
According to payretailers.com, an international payment solutions provider, 45% of all payment transactions are carried out in Argentina through cards (mostly credit cards), 18% are made in cash, 18% with e-wallets and 17% through bank transfers, while 87% of online purchases are paid for by using digital payment methods, by far the highest value among all neighbors in Latin America.