OKX, the cryptocurrency exchange that operates globally in markets like Hong Kong, France, and UAE and has offices in Dubai, Singapore, Australia, and Silicon Valley, has announced that it is expanding its business into a new location.
Hong Fang, the president of OKX crypto exchange, has announced that the company is expanding its business in Argentina, highlighting its vision to expand its business in the Latin American market, where he sees enormous potential for regional growth of the exchange.
Fang said that tapping into the Argentina market is the crucial launchpad the OKX exchange needs to achieve another milestone of remaining a big player in the crypto market.
The exchange currently boasts about serving 50 million users globally, so adding another primary market into their fold is crucial to achieving new highs.
The move follows the company’s ongoing strategy to expand into the South American market, as it launched its platform for the Brazilian market back in 2023.
A recent statement on its website announced what type of services OKX will provide to its user base in Argentina. It stated that OKX’s exchange would offer secure trading, staking services, and high liquidity for cryptocurrencies alongside a localized P2P platform facilitating direct transactions, self-custody wallets, and the ability to transfer non-fungible tokens (NFTs).
With a focus on security, transparency, and compliance, OKX aimed to build trust among users in the vibrant cryptocurrency market of Latin America.
The statement also read that the expansion marked a significant step in OKX’s strategy to accelerate responsible crypto innovation and cater to the needs of both retail and institutional users in Argentina and beyond.
According to Chainalysis, a blockchain analysis company, Argentina ranks 15th on the 2023 Global Crypto Adoption Index. The matrix assesses on-chain and real-world data to measure which nations are progressively advancing cryptocurrency adoption.
The fact that Argentina ranks 15th on the global list means that the country has shown increased acceptance of cryptocurrencies and blockchain technology. Brazil’s ranking is even better than Argentina’s when it comes to showing acceptance toward adopting cryptocurrencies. It currently ranks 9th, six places above Argentina.
The announcement of OKX expanding its operations in Argentina shows that the company is reacting to what Binance did nine months ago because it announced raising its operations in the Argentinian market before OKX. OKX also announced the launch of crypto exchange and wallet services for customers in Brazil in November 2023.
Maximiliano Hinz, the director of Binance for the southern region of Latin America that includes countries like Argentina, Chile, Uruguay, Paraguay, and Brazil, gave an interview to Reuters in which he stated that the exchange decided to expand its business to countries like Argentina is because of the growing demand of cryptocurrencies in the region.
In his statement given on April 2023, he said: “This launch has to do with the public demand that exists here.”
Going back to OKX, the exchange president, Hong Fang, emphasized the importance of the decision to expand the company’s business in the Argentinian market.
He said the recent adoption of cryptocurrencies is why the exchange believes the time is ideal to increase its regional footprint.
He also stressed that Argentina was on their list to launch their crypto and web3 services. He believes it will provide a crucial launchpad to expand the exchange’s business into the Latin American market.
Fang’s statement read: “We are delighted to officially launch the latest expansion of our world-class exchange and Web3 wallet in one of the most vibrant cryptocurrency markets in Latin America. The promise of crypto and blockchain is expanding across Latin America, and Argentina represents a crucial launchpad for our regional growth strategy.”
Following the recent introduction of the “Bases for the Reconstruction of the Argentine Economy” decree in December 2023, Argentine citizens have been granted the legal ability to utilize Bitcoin and other cryptocurrencies for contractual settlements within the country.
Diana Mondino, the Argentine Minister of Foreign Affairs, International Trade, and Worship, officially confirmed this development, stating that contracts in Argentina can now be settled using Bitcoin and various other cryptocurrencies.
A survey conducted by Cointelegraph in 2023 reported that the Latin American population prefers to use centralized exchanges over decentralized exchanges to indulge in their crypto trading activities. It highlighted that the region’s preference for CEX over DEX is greater than the rest of the world.
“Latin America shows the highest preference for centralized exchanges of any region we study and tilts slightly away from institutional activity compared to the other areas. “: read the report published by Cointelegraph.
However, in May 2023, Argentina’s central bank banned payment providers from facilitating cryptocurrency transactions—the decision aimed to mitigate the country’s exposure to digital assets within its payment system.
The central bank cited the intention to subject fintech companies to regulatory standards equivalent to those of traditional financial institutions operating in Argentina as the rationale behind the ban.
