Hong Fang is the president of OKX, one of the top cryptocurrency exchanges around the world. The platform recently launched a new branch in Argentina. The executive noted that the launch was a crucial step in contributing towards the regional growth strategy of the forum.
The forum notified investors that the expansion is part of the plan for expansion in Latin American markets. In 2023, OKX launched a new branch in another Latin nation namely Brazil.
On this front, OKX officials also issued a notification for investors hailing from Argentina noting that they would be able to access the trading services with features such as self-custody wallets and NFT trading options.
Argentina is ranked as the 15th largest nation on Chainalysis for 2023 in terms of Global Crypto Adoption Index. The metric accounts for on-chain and real-world statistics to scale which regions have the top crypto adoption rates. Brazil has been ranked as the 9th top nation in terms of native crypto adoption rate.
OKX launched the new wing in the Latin nation just 9 months after Binance exchange opened a new trading platform in the same area. For April, 2023 Maximiliano Hinz, director of Binance, told Reuters that the decision to expand was taken keeping in view the increasing demand for cryptocurrency services in the region.
The launch will cater to public demand and grant investors hailing from the area another new alternative to trade digital assets.
Crypto Exchange Services in Argentina
Hong Fang, president of OKX, spoke with journalists on the matter of newly launched services in Argentina. The platform noted that it was excited to announce the new launch of the exchange platform compliant with international standards. At the same time, he highlighted the exclusive service of a Web 3.0 wallet for consumers of one of the busiest crypto markets in Latin America.
Fang further stated that Argentina has been marked as a priority nation across the Latin American region. He further stated that blockchain and cryptocurrencies are expanding across various Latin American nations. Argentina is one of the most important launch pads to contribute towards the regional growth plan of the firm.
The government of Argentina passed the Bases for Reconstruction of Economy policy in December 2023. As per this decree, the citizens of the nation will be able to access Bitcoin and other cryptocurrencies to settle contractual obligations within its jurisdiction.
Local Minister of Foreign Affairs, Diana Mondino verified that Argentinian citizens will now be able to settle contract payments in the form of Bitcoin and other forms of cryptocurrencies. For October 2023 a poll conducted by Cointelegraph revealed that Latin American consumers prefer centralized exchanges over decentralized trading platforms in comparison to the other nations.
The minister noted that in Argentina, the preference for centralized trading platforms was greater in comparison to all other Latin American regions which leads to a tilt away from institutional investments.
Central Bank of Argentina Bans Crypto Payments
In May 2023, the Central Bank of Argentina banned payment options using cryptocurrencies. The decision was implemented to maintain the transaction volume of the nationalized payment networks seeping into digital currencies. The Central Bank cited that this policy will encourage fintech companies to implement regulations as conventional financial institutions within Argentina.
High Inflation in Argentina
Meanwhile, as per a Reuters report published in January 2024, Argentina is a nation plagued with the highest rates of inflation citing a 200% increase in 2023 reaching the highest levels in three decades. On this account, the locals have been resorting to using illegal trading platforms colloquially called crypto caves to gain USD exposure via stablecoins.
Some local media outlets have reported that local crypto investors perceive Bitcoin as a high-volatility cryptocurrency. Gullermo Escudero, a member of the crypto market strategic alliances told Cointelegraph that these underground platforms are not normal commercial forums.
Instead, they are non-visible platforms where investors perform transactions based on prior confirmation and exchange fiat for crypto usually investing in stablecoins such as USDT.
