The Central Bank of Argentina (BCRA), has prohibited crypto traders from accessing the single currency market and from purchasing US dollars at the official rate.
Anyone who purchased bitcoins or other digital assets with the Argentine peso within the past 90 days is subject to the ban. This initiative is designed to combat capital outflow from Argentina using cryptocurrencies and the US Dollar.
The Argentine government is trying tighten foreign exchange controls, and to raise interest rates in order to reduce inflation. According to BCRA data, the annual rate of inflation in Argentina was 64% in June 2022. This is one of the highest rates worldwide.
The unexpected resignation of Martin Guzman (Argentine Minister for Economy) in July caused a surge in stablecoin demand on local bitcoin exchanges. Local regulators have banned local credit institutions from providing services to customers related to digital assets. This is to reduce the hype.