The central bank is evaluating the lifting of the ban, with reports suggesting it could be implemented as early as 2026.
The Central Bank of Argentina (BCRA) is drafting significant adjustments to its regulatory direction regarding cryptocurrencies, considering allowing domestic banks to provide crypto trading and custody services, symbolizing a major policy reversal for the country since it completely banned banks from engaging in digital assets in 2022. According to local media (La Nación), the relevant draft is expected to be completed by April 2026.
If the regulations are officially finalized, banks could directly integrate crypto trading into existing accounts and apps, allowing the public to buy and sell Bitcoin and designated cryptocurrencies within a familiar interface. The new system requires banks to place crypto operations under an independent legal structure, adopting higher capital, risk management, information security, and liquidity standards, while also fully complying with KYC and AML regulations, consistent with the requirements set by the Argentine Securities Commission (CNV).
This move stems from Argentina's long-standing issues with inflation and currency controls, leading the public to rely on crypto assets to combat currency depreciation. Chainalysis data shows that the country currently has about 10,000,000 active crypto wallet accounts, generating approximately $91 billion in on-chain transaction volume from July 2023 to June 2024, with over 60% related to stablecoins. This makes Argentina one of the most active crypto markets in Latin America and intensifies the incentive for banks to re-enter the space.
Milei's policies are rapidly shifting, with the financial system seeking integration with crypto
Since the new President Javier Milei took office at the end of 2023, the official stance has significantly shifted towards openness. Milei has long advocated for financial liberalization, encouraging the public to use alternative currencies, while the central bank has gradually relaxed the strict restrictions previously imposed in the name of ‘financial stability.’
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Before the ban was issued in 2022, several banks had already tested crypto features within their apps but were forced to halt due to sudden policy changes. Now, the shift in regulatory direction has made banks ready to integrate technology again and assess custody partners and operational models. Many institutions anticipate that once banks resume offering crypto services, market adoption rates will surge again.
This policy shift is also in line with international trends. After the U.S. revokes SEC's SAB 121 in 2025, large banks like Citi and State Street are restarting crypto custody plans; banks in multiple European countries are also gradually incorporating crypto trading and wallets into retail customer services. The Argentine government's approach is seen as an attempt to synchronize with global financial innovation and reduce the public's reliance on foreign platforms or informal markets.
The army of banks is preparing to return, and crypto adoption could double
Industry insiders generally believe that if banks fully open up to crypto services, Argentina's crypto adoption will undergo a qualitative change. Manuel Ferrari, President of the Bitcoin Argentina Association, pointed out that traditional banks have a large number of authorized accounts and distribution channels; if mainstream banks like Galicia, Santander, or Nación join, it could rapidly multiply the number of people exposed to crypto assets.
Crypto trading platforms are also optimistic about this. The public affairs director of Lemon believes that a more open financial ecosystem can foster innovation and financial inclusion; representatives from Bitso and Bitget also emphasize that bank participation can enhance public confidence, lower educational costs, and significantly reduce the barriers for first-time crypto asset users.
Banks no longer view crypto as competitors. A large private bank anonymously pointed out that crypto assets will become a natural extension of traditional banking services, rather than substitutes. This shift in attitude signifies that the integration of traditional finance and the crypto industry may enter deeper waters.
Implementation challenges remain to be overcome, with tax systems and technology integration being key
Despite the promising outlook, the new system still faces several practical challenges. According to current regulations, banks must establish independent companies and register as ‘Virtual Asset Service Providers (VASP)’ to offer related services, while most banks prefer to collaborate with existing crypto platforms to reduce technical and custody costs.
Past experiences also remind regulators to avoid technological gaps. Before 2022, some banks briefly launched crypto trading services but did not support cross-platform transfers, withdrawals, or wallet functions, resulting in an incomplete user experience and swift removal. Industry experts point out that the success of new regulations depends on how smoothly technology integration between banks and exchanges occurs.
Taxation is also a core factor influencing adoption. If banks are constrained by different tax systems, it could weaken the incentives to collaborate with exchanges and compress the actual returns users receive, leading to obstacles in the promotion process.
Moreover, Argentina's crypto integration has extended to other scenarios. For example, the state-run oil company YPF is studying the use of crypto payments at gas stations, utilizing platforms like Lemon, Ripio, or Binance as intermediary mechanisms. This means that crypto assets may not only return to banks but could also permeate the daily lives of the public.
‘The Argentine Central Bank Plans to Lift Restrictions, Allowing Banks to Support Cryptocurrency and Stablecoin Trading by 2026!’ This article was first published in ‘Crypto City’
