Ualá, an Argentine fintech founded by Pierpaolo Barbieri, is likely to suspend its cryptocurrency business in the next 30 days. The Central Bank of Argentina mandated last week that consumers in the digital asset market not be assisted. Consequently, Ualá was forced to cease the selling of Bitcoin and Ethereum, what it enabled its users to purchase and store. The firm consists of 300,000 users, who must sell their crypto within 30 days. 80 pesos or 5%, whichever is greater, is the fee in pesos Ualá shall impose on their customers for such a transaction, at a rate equal to or greater than the MEP dollar.

Ualá’s app is recorded to have 2 million users and offering the option to invest in Common Investment Fund (FCI), MEP Dollars and CEDEARs will still be in motion. The same no longer applies for cryptocurrencies. Prior to the cease-mandate, Ualá allowed for cryptocurrency purchases and trades, with an enforced minimum transaction of 250 pesos. Withdrawals of these currencies, however, weren’t and will no longer possible.

Whether more members of the market will set similar steps, remains uncertain. Yet, the Central Bank has not wavered from enforcing their decision, insisting that virtual wallets and Payment Service Providers That Offer Payment Accounts (PSPCP) may not offer operations of any kind with digital assets. It goes without saying that such a policy has injected uncertainty into the Latin American market.

In any case, Ualá representatives emphasized that this move won’t affect the broad investing menu they offer to their customers, with the investors having the chance to invest in FCIs, MEP Dollars and CEDEARs, maintaining their status as one of the leading wallet provider in Argentine. Market participants are advised to keep track of the changes in the digital assets market and invest in the currencies that operate within the local regulations in order to minimize their risk exposure.



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