Argentina is reportedly considering a significant policy shift that would permit local financial institutions to engage more directly with cryptocurrencies, marking a departure from its previous restrictive stance.
A report from local news outlet La Nacion, citing sources close to the central bank, indicates that the Banco Central de la República Argentina (BCRA) is contemplating allowing traditional banks to trade cryptocurrencies. This potential move follows an earlier ban implemented in May 2022, when the BCRA prohibited financial institutions from offering crypto trading services. At that time, the central bank cited risks to users and the broader financial system as reasons for the prohibition.
While new cryptocurrency regulations are reportedly in development, the timeline for their finalization and implementation remains unspecified. Representatives from a local cryptocurrency exchange have suggested that the measure could be approved as early as April 2026.
Speculation regarding a potential policy adjustment has been ongoing within the crypto exchanges, banking sector, and among regulatory circles. A representative from the local crypto exchange Lemon expressed optimism, stating that a more open financial ecosystem is expected to be a significant catalyst for the widespread adoption of digital assets in Argentina.
Argentina Reviews Its Stance on Crypto
This potential regulatory change aligns with recent actions taken by the Argentine government. In mid-March, the country’s securities regulator finalized rules for virtual asset service providers, establishing clear guidelines for the industry. Since April 2024, crypto service providers have been mandated to register with local regulators.
Prior to these developments, several major cryptocurrency exchanges received approval to expand their services in Argentina. In January, the publicly traded US crypto exchange Coinbase obtained regulatory approval. Binance announced in October 2024 that its mobile and web applications were fully available to users in Argentina after being registered as an official crypto service provider. Similarly, Bybit was approved for operations in Argentina in mid-August 2024.
Argentina Sees Booming Crypto Adoption
Argentina's cryptocurrency industry has experienced steady growth, surpassing Brazil to become the leading Latin American country in terms of estimated crypto inflows by users as of early October 2024. Data from July 2024 indicated that Argentina was at the forefront of crypto adoption in the Western Hemisphere. Analysts frequently attribute this trend to the significant weakness of the peso and an inflation rate that had reached approximately 276%.
Until recently, regulatory sentiment was largely unfavorable towards this trend. In May 2023, the central bank prohibited payment providers from facilitating crypto transactions, reinforcing earlier restrictions on how formal financial institutions could interact with digital assets.