Argentina is “a crucial launchpad” for the cryptocurrency exchange OKX’s regional growth strategy, according to president Hong Fang. The cryptocurrency exchange OKX has declared its entry into Argentina, continuing its goal of entering the Latin American market. This action comes after its late 2023 introduction in Brazil.
Recently, OKX released a statement announcing that users in Argentina will have access to the exchange’s cryptocurrency platform, which includes a self-custody wallet and the capacity to trade non-fungible tokens (NFTs). According to Chainalysis’ global crypto adoption index, which evaluates both real-world and on-chain data to determine which countries are leading the way in the adoption of cryptocurrencies, Argentina is ranked 15th. Brazil is currently ranked ninth. About nine months have passed since rival cryptocurrency exchange Binance began offering trading services in Argentina.
The decision to expand was made because of Argentina’s increasing need for cryptocurrency services, according to Maximiliano Hinz, director of Binance in the Southern Cone, who spoke with Reuters in April 2023. “This launch has to do with the public demand that exists here,” Hinz said. In the meantime, OKX CEO Hong Fang highlighted Argentina’s notable recent increase in the use of cryptocurrencies.
“We are thrilled to formally announce the most recent extension of our top-notch exchange and Web3 wallet into one of Latin America’s busiest cryptocurrency markets.”
Fang added that as part of its strategy to expand throughout Latin America, Argentina is a top goal. “Argentina serves as a critical launchpad for our regional growth strategy, and the promise of cryptocurrency and blockchain is expanding throughout Latin America,” Fang said. This comes after it was announced that the “Bases for the Reconstruction of the Argentine Economy” legislation, which was issued in December 2023, allows inhabitants of Argentina to settle contracts within the nation using Bitcoin and other cryptocurrencies.
According to Diana Mondino, Argentina’s minister of foreign affairs, trade, and religion, “Argentina contracts can be settled in Bitcoin, and also any other crypto.”
However, in contrast to the rest of the globe, centralised exchanges (CEXs) are preferred in Latin America, according to a report published in October 2023: “When compared to other regions, Latin America exhibits the strongest preference for centralised exchanges and leans slightly away from institutional activity.”
But in May 2023, the central bank of Argentina banned payment companies from handling cryptocurrency transactions in an attempt to reduce the vulnerability of the country’s payment system to digital assets. The monetary authority claims that this was done to guarantee that fintech companies operating in Argentina will be bound by the same regulations as conventional financial institutions.