Argentina Reconsiders Ban on Bank Crypto Trading

Argentina’s central bank is evaluating the repeal of its 2022 ban on banks offering cryptocurrency trading, potentially allowing BTC and stablecoins under strict regulation.

This move could integrate Argentina’s informal crypto use into the formal system, impacting market dynamics and strengthening regulatory oversight.

Argentina’s central bank is considering lifting the ban on bank cryptocurrency trading, initially imposed in 2022, signaling a shift towards integrating crypto under regulatory frameworks.

This move reflects Argentina’s evolving financial policy under President Milei, potentially impacting the banking and cryptocurrency sectors significantly.

Argentina’s Central Bank Explores Crypto Trading in Banks

Argentina’s central bank, known as BCRA, is evaluating revoking a 2022 ban on banks’ crypto activities. The proposed plan could allow banks to offer BTC and stablecoins under strict regulations. The BCRA‘s policy reversal aligns with President Javier Milei’s pro-crypto and financial freedom agenda. Licensed banks might operate dedicated crypto desks, separate from regular banking services.

Banks to Gain Access to Regulated Crypto Markets

This potential policy change could broaden banking participation in the crypto market, impacting both retail and institutional clients. It aims to shift crypto activity from offshore platforms to regulated environments. The regulatory plans may boost financial transparency and address USD flow management amid Argentina’s inflationary pressures. The shift could attract more bank engagements with digital assets.

IMF Pressure Eases: Argentina Considers Crypto Reforms

Previously, the 2022 ban emerged due to IMF pressure discouraging crypto within banks. The current proposal seeks to formalize Argentina’s existing informal crypto economy, already significant among savers. Lessons from Brazil and the EU showcase potential benefits, such as improved market integrity and stability. If successful, Argentina’s approach could encourage broader adoption of crypto banking services.

— BCRA Official