Uala, an Argentina-based fintech company, launched Bitcoin and Ether trading for its clients in the country on Friday.

Andrés Rodríguez Ledermann, Vice President of Wealth Management at Uala, said that initially the new service will be extended to a few thousand clients. However, he said the services will be available to all of the firm’s 4.5 million Argentine users in the coming weeks.

Rodríguez said that although the company plans to launch the service in Mexico and Colombia, where it also operates, it is necessary to analyze and address regulatory issues before such operations.

According to the report, Uala is the first market participant to implement cryptocurrency trading in Argentina since the local central bank banned two banks in May from allowing its users to access cryptocurrencies.

Rodríguez revealed that in order for the firm to comply with the regulations in force in the country, Uala established a special company to offer its crypto service: Uanex, which is based in England and has Latin American crypto firm Bitso as its crypto liquidity provider. .

In early May, the Argentine central bank banned unregulated cryptocurrency transactions at traditional banks. The central bank instituted the ban, saying that digital assets are not regulated in the country.

The announcement came a few days after Argentina’s largest private bank, Banco Galicia, and Argentina’s largest 100% digital bank, Brubank SAU, began offering digital asset trading services including Bitcoin, Ether, and USDC. stablecoin on their platforms.

The ban means that local users had to use centralized crypto exchanges or trade directly through over-the-counter exchanges.

Argentina has been dealing with high inflation and the devaluation of its currency, the peso, for years. In March alone, the country’s monthly inflation rate rose to 6.7%, exceeding forecast data. As a result, locals have started investing in cryptocurrencies to protect their savings from declining purchasing power. Some employers also allow up to 20% of an employee’s salary to be paid in cryptocurrency.

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