Argentina’s Central Bank to Lift the Ban on Crypto Services

Argentina‘s central bank is considering lifting its ban on traditional financial institutions offering cryptocurrency trading and custody services.

The Banco Central de la República Argentina (BCRA) may soon allow banks to enter the digital asset market under new regulatory frameworks. This potential policy reversal marks a significant departure from years of explicit prohibition.

🚨 JUST IN: ARGENTINA’S CENTRAL BANK CONSIDERS LIFTING THE BAN ON CRYPTO SERVICES, A MAJOR STEP TOWARD MAINSTREAM ADOPTION AND FINANCIAL INNOVATION. pic.twitter.com/69kQecmygF

— Coinwaft (@coinwaft) December 8, 2025

The administration of President Javier Milei is reportedly evaluating this regulatory overhaul. His government has expressed pro-market and crypto-sympathetic positions since taking office. Argentina already ranks among the world’s most active crypto-adopting nations.

Chronic inflation and peso volatility have driven millions of citizens toward Bitcoin and stablecoins. Many Argentines use US dollar-pegged tokens to preserve their savings against currency depreciation. The proposed changes would bring this massive existing activity into the regulated banking sector.

Argentina Banks Poised to Reshape Local Crypto Landscape

The primary motivation behind this policy shift is financial formalization. Ordinary Argentines have long relied on digital assets to bypass peso depreciation and foreign currency restrictions. The central bank now seeks to channel these transactions through regulated institutions.

Banks would provide enhanced investor protections unavailable through unregulated channels. Formal institutions must uphold robust Know Your Customer and Anti-Money Laundering controls. These safeguards would offer citizens a safer, compliant pathway to crypto ownership.

The government also stands to gain improved oversight of this growing economic segment. Formal bank involvement would enable more effective tracking and taxation of cryptocurrency transactions. This increased visibility supports broader financial system transparency goals.

Officials appear ready to acknowledge digital assets’ role as de facto inflation hedges. Incorporating crypto into formal finance recognizes how citizens already manage wealth amid economic instability. This pragmatic approach could help stabilize domestic capital flows over time.

Major Argentine banks entering the crypto space would dramatically alter the competitive environment. Independent Virtual Asset Service Providers and crypto-native exchanges currently dominate the market. Traditional banks possess extensive customer bases and substantial capital reserves.

These advantages could position established banks as instant market leaders. Existing crypto firms would face significant competitive pressure from well-resourced new entrants. Industry observers expect this competition to drive down transaction costs and improve service quality.

However, substantial regulatory and operational hurdles remain before implementation. The BCRA must first repeal its existing prohibition on bank crypto activities. Entirely new prudential rules governing capital and liquidity risk management will require development.

Legal Troubles Shadow Crypto-Friendly Administration

Meanwhile, the Milei administration faces scrutiny over a separate cryptocurrency controversy. Argentine Federal Judge Marcelo Giorgi recently froze assets connected to the LIBRA memecoin scandal. The case has implicated President Milei himself in promoting the troubled token.

According to Cryptopolitan, Argentine federal judge Marcelo Giorgi has issued a "prohibición de innovación" order to freeze assets linked to the LIBRA memecoin scheme that was publicly promoted by President Milei. The measure covers U.S. businessman Hayden Davis and two crypto…

— Wu Blockchain (@WuBlockchain) November 11, 2025

The court’s prohibition of innovation order targets properties and financial holdings of several individuals. Entrepreneur Hayden Davis and two cryptocurrency operators face asset freezes under the ruling. The precautionary measure remains in effect indefinitely.

Argentine Orlando Mellino and Colombian Favio Rodriguez have been identified as the crypto operators involved. Both allegedly control cryptocurrency wallets displaying suspicious activity now under judicial review. Federal prosecutor Eduardo Taino requested the asset freeze based on investigative findings.

Technical reports from the Secretariat for Financial Investigation supported the prosecutor’s request. The General Directorate for Asset Recovery and Forfeiture of Goods also contributed evidence. Officials Maria Bergalli and Maria Chena signed recommendations for proceedings against all three men.

This ongoing legal matter adds complexity to Argentina’s evolving cryptocurrency regulatory landscape. The administration must navigate these challenges while pursuing its broader financial modernization agenda. Market participants continue watching developments closely as policy discussions advance.