In the recent happenings of the spreading waves of cryptocurrency globally, two top banks in Argentina offer their customers the options to make financial transactions in cryptocurrencies.
Monday, May 2nd, marks the commencement of the cryptocurrency services by the two banks. According to the report, Banco Galicia and Brubank are the two financial institutions that have added crypto-related services as part of their operation areas.
Banco Galicia, which is reputable as the largest bank in Argentina, has stated that it will allow its customers to make investments in Bitcoin and other cryptocurrencies. The other bank, Brubank, is a virtual bank. It also declared its intention to offer cryptocurrency-related services to its clients.
The option for crypto has been introduced to the investments part of the website of Banco Galicia, a subsidiary of Grupo Financiero Galicia. Additionally, the menu item “FIMA Funds,” “Fixed Term,” “ETF,” “CEDEAR Stock Bonds,” and “Primary Tenders” are available.
Various cryptocurrencies including Bitcoin, USD Coin, Ether and Ripple’s XRP are all accessible for investment. These digital currencies may be acquired for a minimum ARS 100 ($0.50) investment in Argentine pesos.
Regulations on Sales and Withdrawals
As part of the bank’s effort to “test the waters” when dealing with cryptocurrencies, there are some restrictions placed on the withdrawal and sales of digital assets. For instance, if an investor needs to withdraw capital and profits in cryptocurrencies, the rule guides that the investor has to offer them for sales in the same bank they are withdrawing from.
The regulations on withdrawal and sales were put in place by the Banco Galicia. It is contained in the investment contract, which serves as a precondition before a user can carry out crypto operations in the bank. In addition, the bank partnered with foreign crypto platforms like ‘Lirium,’ a Liechtenstein-based company that provides mobile banking applications and digital wallets.
Banks in Argentina are still rather new to offering cryptocurrency services; as a result, the Central Bank of the Argentine Republic does not have a regulatory framework that guides investment and sales. Instead, it is managed by external firms like Lirium.
There is also the rapid development of cryptocurrencies by Brubank as the financial institution has also enabled digital currencies on its platform.