Binance Crypto Exchange Expands in Argentina

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BUENOS AIRES, April 4 (Reuters) – Crypto exchange Binance, which has been sued by U.S. regulators, said on Tuesday it was expanding its services in inflation-hit Argentina, allowing users to buy and sell digital currencies directly with local pesos.

The move allows Argentinians to transfer pesos to a Binance account through a local partner, which can then be used to purchase cryptocurrency. Until now, Binance had only operated in Argentina as an intermediary platform to connect crypto buyers and sellers.

“This launch is linked to the public demand that exists here,” Maximiliano Hinz, director of Binance in the Southern Cone, told Reuters on Tuesday in a written statement, adding that Argentina was a key market for the exchange.

He said local users could transfer pesos to a Binance account and see their balance reflected in the local currency, which would then be usable to buy crypto.

The expansion in Argentina, where annual inflation above 100% has made cryptocurrencies more attractive despite their volatility and risk, comes as Binance faces regulatory scrutiny in the United States and elsewhere.

Late last month, the U.S. Commodity Futures Trading Commission (CFTC) sued the company and CEO Changpeng Zhao for operating what the regulator called an “illegal” exchange and “sham” compliance program. .

Zhao, a Chinese-born billionaire who moved to Canada when he was 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 needed for so-called on- and off-ramp trades to fiat currencies. Paysafe, which handled payments in sterling, recently pulled out in March.

Argentina does not regulate crypto exchanges, but the central bank has repeatedly warned of the risks of cryptocurrencies and market regulator CNV is backing a bill to create a registry of providers offering virtual assets .

The South American country, which enforces strict capital controls that limit foreign exchange trading, was among the top 15 countries in the world for crypto adoption last year, according to the Chainalysis Index.

“Argentinian users know the world of crypto,” Hinz said.

Reporting by Anna-Catherine Brigida in Buenos Aires Editing by Matthew Lewis

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