Argentina Eyes Move from Crypto Ban to Regulated Bank Access

Argentina’s central bank is exploring enabling banks to provide crypto trading and custody under a regulated framework for greater accessibility and oversight.

The central bank of Argentina is discussing a proposal to lift its ban on the cryptocurrency activities of banks in the country. The framework would enable trading and custody services and would be a step up from prohibition. The goal of the plan is to bring Bitcoin, stablecoins, and other digital assets into compliance and to increase the standards for KYC and AML.

Banks Could Enter Crypto Market with New Rules

If such a proposal is approved, private banks would compete with local exchanges and provide citizens with the option to buy, sell, and store crypto through traditional financial institutions. Observers observe that such integration may entail lower fees and higher convenience while only establishing new capital and liquidity needs in order to maintain financial stability.

The proposal follows Argentina’s regulations passed in 2024, which forced Virtual Asset Service Providers (VASPs) to register with the National Securities Commission (CNV). That framework provided for basic oversight of providers of digital assets and paved the way for wider integration into the formal financial system. By bringing into the equation, the authorities hope to bridge the gap between traditional finance and crypto markets.

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High levels of inflation and the demand for financial autonomy have been key drivers behind the mass adoption of crypto in Argentina. President Milei has publicly promoted the use of crypto as an independent currency of the state. Analysts say formal involvement by banks could serve to legitimize digital assets and make them less dependent on unregulated platforms, and open them up to retail users.

Currently, the regulatory landscape is still evolving. Authorities are still finalizing rules for VASPs and assessing how safely crypto can integrate with traditional banking. Argentina’s move may serve as a model to other countries, balancing innovation with risk management. Reports show new rules for bank participation may be implemented in 2026.

Central Bank Signals Shift to Regulated Crypto Services

The change in regulated access to bank accounts is a broader trend for Argentina financial sector. By combining oversight with market access, authorities hope to serve both to protect consumers while encouraging innovation. Citizens will soon be able to conduct business in crypto more smoothly, directly through their existing banks, making crypto transactions more convenient and secure.

In addition, this regulating evolution may be an incentive for more investments and trading activities. It is also a recognition that digital assets are becoming a permanent part of the financial landscape. Bringing crypto services to the banks solidifies market transparency and oversight, which minimizes risks of informal platforms.

However, Banks might provide other services such as custody, lending, and payment solutions in connection with digital assets. Such developments could reduce barriers to entry, increase liquidity, and give investors more confidence in the institutions and retailers.

Overall, Argentina’s central bank seems set to move from restrictive to regulated and structured. By considering the engagement of banks in crypto services, the country aims to balance innovation, financial stability, and consumer protection. This move could be a major milestone for Latin American crypto markets and could indicate wider trends for adoption worldwide.

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