BCRA Bans Cryptocurrencies in Wallets: Who Does It Affect?

The Central Bank prohibited fintech platforms from offering crypto products or including digital currencies in their coffers. the keys

,no one expected it“That’s how they summarize the fintech industry to the extent that The Central Bank Launches This Thursday And For Which It Set “Crypto Stocks” Payment Account Service Provider (PSCPP), better known as non-bank wallet,

In fact, it states that “They will not be able to cater to or facilitate their customers to conduct operations with digital assetscrypto assets and those whose yields are determined”. Thus, the Standard applies Property “Not authorized by a competent national regulatory authority or central bank.”

Crypto Trap to Wallet: What’s the Ideal?

as he can confirm iProUP, BCRA measure does not affect 100% of crypto wallets, but for those who are registered as PSCPCs on the payroll of the agency. and the goal of this step would be Avoid the “pay button” to automatically buy cryptocurrency,

,Regulation has first and last name: it is a frontal attack against ULA and to prevent Mercado Librewhich already provides crypto service in Brazil and Chile”, warns iProUP A well known businessman in the area who prefers not to be mentioned.

The second victim is the Uruguayan app Prex Including the service of buying and selling digital currencies lirium, Firm that owns “X Patagon” of Argentina In this board and license in Liechtenstein.

Another source in the sector trusts iProUP He this is a The counter-attack by banks seeking the BCRA includes this type of restriction to “reduce asymmetry”.After Unit restricting Galicia and Brubank offer this service.

rule comes at a time when Fintechs are increasingly playing a leading role in the payment system: Of the 1.2 million CVU accounts that existed in 2019, there are more than 34 million today. Which is why, explains a long-time fintech entrepreneur iProUP He “This is 100% political measure.,

,It is useful for the government that people buy USDT (digital currency listed at par with the greenback) so that it doesn’t turn it blue, Note that it is 20 or 30 pesos less. But They are marking the pitch for Mercado Libre and Ualáwho are identified as ‘adversaries’ apart from being ‘competitors’ of the banks”, he remarked.

In this sense, two widely listened sources in the entrepreneurial ecosystem provide assurance that Marcos Galperin read the play before anyone else and went ahead.

For now, many believed that Businessman He had his own local crypto business in “Cat Flap”, already operating in Brazil, Mexico and Chile, waiting for a change of government to give it a strong boost., He feared “Tuesday the 13” from the authorities and, ultimately, he was right.

Crypto trapping of wallets: background

Mercado Libre and the bank are currently offering a discount Battle around QR. From traditional banking they ask to open the code for the credit card, since today interoperability only works with bank or fintech account balances. They don’t hesitate to define the unicorn as a “monopoly”.

,Largest QR provider concentrates 70% of the totalof transactions, the Association of Banks of Argentina (Adeba) cites as an argument for “opening” the system to the card.

The unicorn’s reply was not long in coming: accused the bank of not investing in technology and deploying in businessesIn addition, stating that Entities uploaded to Modo do not compete, but coordinate.

Ualá included its own button to buy and sell bitcoin and ether a few months ago

Ualá included its own button to buy and sell bitcoin and ether a few months ago

They chide him for the limits and barriers to transfers to CVU accounts, a flag he continually raises. Pierpaolo Barbieri, CEO of Ula. He and Galperin chose to use a plan B: Debin to fund the app by automatically debiting a bank account,

According to two sources in the fintech sector, the spark that ignited There was a failed transaction with “QR Gate” mode, Apparently, a bank official wanted to take advantage of a promo with installments in the pharmacy chain. “Scan there: Account balance with MODO, with Mercado Pago card and accepts installments“, would warn the cashier.

In fact, The only code, although interoperable, belonged to Unicorn and sank any promotion in it. pharmacy chain Connected to a former Macrista executive who is no longer part of the businesses associated with MODO.

What’s more: Because QR card transactions are not regulated like account balances (0.8%), The wallet can withhold commission from 4.4% (Ualá) to 6.39% (Mercado Pago) of the total spend.

Yes, OK Method It is cheaper, as it uses regulated rates like Posnet and Lapos (0.8% for debit, 1.8% for credit), More and more people put their balances in the Unicorn Wallet to “work” until you actually use your money. Today it owns 77% of all mutual fund accounts in the country.

This is a distinction not offered by banks, which do not remunerate inactive balances in accounts.

Mercado Pago to offer crypto in Brazil and Chile, but BCRA blocks Argentina from doing so

Mercado Pago to offer crypto in Brazil and Chile, but BCRA blocks Argentina from doing so

Crypto Trapping of Wallets: What About Regulation?

one of the main points of The brief statement of the BCRA is an adjective for “unregulated” assets to talk about digital currencies., In fact, There is no standard in Argentina that defines what a cryptocurrency is Nor any specific legislation beyond those mentioned in the 2017 tax reform or the proposals for AFIP and BCRA.

as far as he could tell iProUP, CNV working on rules, since these instruments are first interpreted as “securities” rather than currency. In fact, the members of the organization participate in permanent consultations.

,Fintech Chamber in Crypto, work in progress between CNV and BCRA, What stings the most is related to the FATF’s demands on the transparency of the entire financial system and this could lead to Argentina’s exit from the G20.” off the record An important executive in the field.

One of his colleagues ironically: “Government moves one box and leaves three behind on crypto issues“, and predicted that these months would be “very hot on political issues” for the region.

one of them is the wrong move Money laundering law reform project, approved in deputies and is awaiting treatment in the Senate. and criticized by the industry, since Obliges any user using cryptocurrencies to register in the CNV registry.

In view of what is to come, NGO Bitcoin Argentina voted unanimously to change its leadership this Thursday: Members left engaged in entrepreneurship to give rise to legal professionals and taxpayers who allow the “more political” position to consolidate.

Thus, the field wants The combination of any regulation on digital currencies is consulted with the ecosystem To guarantee growth, to protect the privacy and freedom of savers, and to encourage investment in a sector in which Argentina is a “powerhouse” in terms of human and entrepreneurial talent.