- Crypto adoption soars in Argentina
- Argentines buy USDT spot and “do nothing with it”
- Argentina’s securities regulator has not registered any top exchanges
Argentina is now the top market for Binance, one of the world’s largest crypto exchanges, in terms of the number of visitors. Cryptocurrencies are taking off in Argentina, setting new records in the Americas thanks to the country’s sky-high inflation rate.
Forbes analysts say that Argentina is the Western Hemisphere leader in cryptocurrency adoption, with an annual inflation rate of 276%.
In terms of the overall population, more Argentinians are getting into crypto than in any other country in the Western Hemisphere. The report noted that 2.5 million of the 130 million visitors to the 55 largest exchanges in the world would come from Argentina, citing data from the Similarweb website.
Argentina is the top market for Binance, one of the world’s largest crypto exchanges. Web traffic from Argentina accounts for 6.9 percent of Binance’s total visits.
Argentines buy USDT Spot and “Do Nothing With It”
It seems that, unlike the upward trend of meme coins, crypto adoption in Argentina isn’t being driven by meme coins. Instead, the locals would rather hold stablecoins like USDT.
Analysts say that, according to comments by Maximiliano Hinz, head of Latin America at Bitget, Argentina is a bit of an outlier in the market. Many people buy USDT and don’t leave much room for anything else.
“Argentines buy spot Tether and don’t really do anything with it”, Hinz added.
Stablecoins like USDT are a type of cryptocurrency designed to keep its value steady by linking it to a reserve of U.S. dollars at a 1:1 ratio.
With massive local inflation rates, holding money in USDT seems sensible for Argentine citizens, even though the country lacks significant measures to protect stablecoin investors.
The Argentine Securities Regulator Hasn’t Registered Any Top Exchanges Yet
Even though Argentina is pretty open to cryptocurrencies like Bitcoin, it’s still struggling to create a regulatory framework for the sector.
In late 2023, after President Javier Milei took office, Argentina officially approved using Bitcoin in legally binding contracts.
Since then, Argentina has attempted to regulate the local cryptocurrency market, approving registration requirements for cryptocurrency firms in April 2024.
According to Forbes, despite government efforts to regulate the market, Argentina continues to fail to provide regulated cryptocurrency services to its population.
The report states that none of Argentina’s major crypto exchanges, including Binance, have registered with the national securities regulator, the Comisión Nacional de Valores (CNV).
“As far as I know, there is no licensing requirement in the Latin American countries where Bitget operates,” Hinz claims.
Cointelegraph contacted CNV to comment on local crypto regulations but received no response at the time of publication.
What Could Happen in the Market?
Stablecoins like USDT are becoming more popular among Argentinians looking to hedge against inflation. This could be a good thing for people in the country, as it could provide a more stable financial environment amidst the current economic chaos.
Regulatory Challenges: Argentina doesn’t have a regulatory framework for crypto exchanges, which could lead to more scrutiny and potential crackdowns down the road. This could affect how accessible and operational these platforms are.
Argentina’s big move into crypto could boost the local and global market. Companies will be coming up with new ways to meet this growing demand.
Discover how Argentine soccer legend Leo Messi promotes a new crypto initiative and its potential impact on the market.
