• Two banks currently offer these partnerships to foreign cryptocurrency platforms.
• Users will need to be aware of the limitations that cryptocurrency trading contracts may place on their ability to sell assets.
• Banco Galicia stated that digital currencies obtained while they were in custody by the supplying companies have shown improvements.

Banco Galicia is the nation’s largest bank and will now allow clients to invest in and other cryptocurrencies. Brubank, an Argentine online bank, has also announced it will offer cryptocurrencies.

Both financial institutions began rolling out cryptocurrency-related services on Monday May 2nd.

On its website, the “Crypto” option was added to the webpage of Banco Galicia home banking, a subsidiary of Grupo Financiero Galicia, under the “Investments” section. Other investments found in the menu include “ETF”, “Fixed Term”, “FIMA Funds”, “CEDEAR Stock Bonds” and “Primary Tenders”.

The range of cryptocurrencies available for investment includes Bitcoin (BTC), Ether (ETH), (USDC), and Ripple’s . For a minimal investment of ARS 100 (0.50 USD), all the aforementioned digital currencies are available for purchase using Argentine Pesos.

There are limitations on sales and withdrawals

Investors are restricted in their ability to withdraw cryptocurrencies from banks. Investors who wish to withdraw money and profit in cryptocurrency must also offer the coins for sale to the bank.

The Banco Galicia investment agreement establishes this condition, and the user must agree to it before they are allowed to perform operations. The investment plan was designed in partnership with Liechtenstein-based platform ‘Lirium’, which offers digital wallets and mobile banking applications.

The Flipside

• Since the country has not established a framework to regulate cryptocurrencies yet, the categories of investments are not covered by the regulation of the Central Bank of the Argentine Republic.
• Assets acquired by Banco Galicia remain with the company that provided the service. Banco Galicia does not have any control over these assets.

It is protected by an outside firm. Similar to Paxos (NASDAQ:) with PayPal (US and Mercado Pago), here it’s called Lirium,” stated Ignacio Carballo who is a specialist in fintech and financial inclusion.
He added that “initially it will only be closed circuit -purchase and sale of pesos- crypto without mobility between users/platform. We’ll have to wait and see how this develops.”
He explained, “Lirium” is a company that employs a large number of Latin American talents, including many former Xapo employees. Paxos continues to be the dominant player worldwide, but it’s encouraging to see the development of the regional suppliers market.

BrubankCrypto Investments – Beta Phase

Brubank (NYSE:) is an additional Argentine bank that allows the purchase and selling of cryptocurrencies. This week, the bank has also made it possible to purchase private digital currencies like DAI, USDC, ETH and BTC.

“We already have crypto! This functionality is gradually being made available to all users. It will allow you to see it through the app by simply entering “Investments”.
The beta phase of the investment option currently is being tested, so is it not accessible to everyone? In the next few days, this option should be available in full.

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