Brubank, one of Argentina’s first digital banks approved by the country’s central bank, is entering the cryptocurrency business. The company announced that it now allows customers to make cryptocurrency investments through its platform, giving them the ability to buy cryptoassets in its app. It is reportedly the second financial institution to provide such services in the country.
Brubank introduces cryptocurrency services
Private banks in Argentina are beginning to realize the value of offering cryptocurrency services to their customers amid the country’s crypto boom. Brubank, a fully digital financial institution licensed by the country’s central bank, announced that it now offers cryptocurrency buying services in its app. The bank announced this new feature on social media, answering a customer question about the platform’s new features.
Brubank said:
Yes, we already have cryptocurrency! This is a functionality that is gradually being enabled for all of our users. When it is enabled, you will be able to view it by logging into “Investments” in the app.
Brubank has decided to offer only four cryptocurrencies on its platform, listing BTC, ETH, and two stabelcoins: USDC and DAI.
The legality of the banking crypto hype
Brubank is not the first banking institution to provide cryptocurrency services to its customers in Argentina. On May 2, Banco Galicia, another private bank, also announced that it already offers cryptocurrency investments directly from its home banking app, noting customer demand for these tools.
However, cryptocurrencies are still not regulated in the country, and banks cannot offer cryptocurrency investments on their own. In order to do so, banks enter into partnerships with third-party organizations that operate out of the country, offering white-label services. In the case of Banco Galicia, it is Lirium, a European regulated platform that provides liquidity, transactions, and custodial services to the bank’s customers. Brubank has not yet announced which platform provides these services for the institution.
The nature of these arrangements means that the funds stored in these cryptocurrency wallets are not secured by the laws of the country and are outside the protection that the country’s institutions, such as the central bank or the National Securities Commission, can offer for investment instruments.
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