Argentina is considering allowing local financial institutions to engage more directly with cryptocurrencies, according to local media reports, in a move that would mark a significant shift from its restrictive stance.
Local news outlet La Nación reported on Friday that Argentina’s central bank, the Banco Centrale de Argentina (BCRA), is considering allowing traditional banks to trade in cryptocurrencies. The article cites “sources close to the organization.” Cointelegraph has not independently verified these claims.
The BCRA moved to ban financial institutions from offering cryptocurrency transactions in May 2022, days after the country’s two largest banks signaled they would open up to digital assets. BCRA said such efforts pose risks to users and “the financial system as a whole.”
New cryptocurrency rules are reportedly being drafted, but sources in La Nación have not said when they will be finalized or implemented. Representatives of locally-run exchanges suggested the measure could be approved as early as April 2026.
Rumors about such a potential change have been circulating among people close to crypto exchanges, bankers and regulators for some time, according to the report. A representative from local cryptocurrency exchange Lemon said the company believes that “a more open financial ecosystem will be a key driver for the mass adoption of digital assets in Argentina.”
Related: Overview of virtual currency regulations in Argentina
Argentina reconsiders stance on virtual currencies
The regulatory changes suggested in the report are consistent with the direction recently taken by the Argentine government. In mid-March, Argentina’s securities regulator finalized rules for virtual asset service providers, setting clear guidelines for the industry. Starting April 2024, cryptographic service providers will be required to register with local regulators.
This follows US-listed cryptocurrency exchange Coinbase receiving the green light from Argentine regulators in January to expand its services in the country. In October 2024, Binance also announced that its mobile and web applications were now “fully available” to users in Argentina after being registered as an official crypto service provider. Similarly, virtual currency exchange Bybit was approved to operate in Argentina in mid-August 2024.
Related: Argentina’s state-run energy giant considers virtual currency payments for fuel: report
Cryptocurrency adoption surges in Argentina
The country’s cryptocurrency industry is also growing at a steady pace, and in early October 2024, it surpassed Brazil to become the top country in Latin America in terms of estimated virtual currency inflows by users. Separate data from July 2024 suggests that Argentina is leading the way in cryptocurrency adoption in the Western Hemisphere, with analysts often pointing to the extremely weak peso and inflation, which has reached around 276%, as the main factors.
Until recently, regulators were largely hostile to the trend. In May 2023, the central bank banned payment providers from offering cryptocurrency transactions, tightening previous restrictions on how formal financial institutions can handle digital assets.
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