Argentina’s Central Bank Approves First Bitcoin-Based Futures

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The Argentinian financial markets regulator, the National
Securities Commission (CNV), has approved the first Bitcoin-based futures
contract, which gives investors exposure to the top cryptocurrency. It marks
the first time the regulator is approving such a product in the
country.</p><p>The futures contract is
based on the <a href="https://www.financemagnates.com/terms/b/bitcoin/">Bitcoin</a> index listed by the Argentinian securities exchange, Matba
Rofex. Following the listing, Matba Rofex released the guidelines on how the
futures contract will be traded in a statement yesterday (Thursday).</p><p>"The measure, which
was adopted through a resolution, intends to facilitate adaptation to the
regulatory challenges imposed by new technologies in the provision of financial
products," the CNV said in a <a href="https://www.argentina.gob.ar/noticias/la-cnv-aprobo-futuros-basados-en-indice-bitcoin" target="_blank" rel="follow">statement</a> translated from Spanish.</p><p>Trading Guidelines</p><p>One of the guidelines is
that the futures contract will be traded only by qualified investors, as
defined by the CNV. Under the guideline, the payment services providers offering the futures
contract are required to verify whether their users are qualified to trade.</p><p>Additionally, the CNV
stated in the statement that Matba Rofex must ensure that the payment services
providers are registered with the central
bank of Argentina. It is one of the measures the regulator is taking to protect
investors from fraud.</p><p>Matba Rofex has
warned investors about the risks involved in trading the new Bitcoin futures
contract. One of the risks is the fluctuation in the prices of Bitcoin which can result in financial losses. Additionally, the <a href="https://www.financemagnates.com/terms/t/trading-platform/">trading platform</a> explained that
the CNV does not control the activities of the payment services providers offering the contract.</p><p>Argentina Softens Stance
on Crypto</p><p>Argentina has attracted major cryptocurrency companies offering digital currencies to users in the region who are currently
facing a high inflation rate. <a href="https://www.financemagnates.com/cryptocurrency/binance-expands-crypto-services-in-inflation-hit-argentina/" target="_blank" rel="follow">Finance
Magnates</a> reported in
April that Binance, the largest cryptocurrency exchange by trading volume, was <a href="https://www.financemagnates.com/cryptocurrency/binance-expands-crypto-services-in-inflation-hit-argentina/" target="_blank" rel="follow">expanding
its services</a> in the country.</p><p>Currently, Binance
allows users in Argentina to purchase and sell cryptocurrencies using pesos. The service is accessible through one of the exchange's financial partners. Initially, Binance allowed
peer-to-peer cryptocurrency transactions.</p><p>However,
Argentina is yet to allow regulated financial institutions, including banks, to
offer cryptocurrency services in the country. Last year, the country's central
bank <a href="https://www.financemagnates.com/cryptocurrency/regulation/argentinas-central-bank-prohibits-banks-from-offering-crypto-services/" target="_blank" rel="follow">warned
financial institutions</a> that
they could not offer digital asset services. The warning was issued after two
banks <a href="https://www.financemagnates.com/cryptocurrency/news/argentinas-private-lenders-confirm-crypto-services-launch/" target="_blank" rel="follow">confirmed</a> that they were facilitating such transactions.</p>

This article was written by Jared Kirui at www.financemagnates.com.