Argentina’s central bank is reportedly preparing draft regulations that could permit traditional financial institutions to offer cryptocurrency trading and custody services, a notable shift from the country’s historically restrictive approach. This move is intended to integrate widespread, informal crypto activity into the regulated financial system, providing new on-ramps for Argentines seeking stable value amid persistent currency volatility and high inflation.
Easing Restrictions to Formalize Crypto Demand
The proposed regulation would open the door for regulated lenders to directly handle digital assets, a business currently dominated by domestic and international fintech platforms. While key details and a firm timeline remain unconfirmed, some market participants anticipate a potential approval around April 2026. This legislative initiative is part of a broader government strategy to ease restrictions on digital asset use, acknowledging the significant role crypto has assumed in the national economy.
Argentina stands out globally for its high rate of crypto adoption, a dynamic fueled by years of hyperinflation and capital controls that have driven citizens to seek alternatives to the peso. For many households, digital assets, particularly stablecoins, have become a primary store of value. Chainalysis data indicates Argentina recorded over $93.9 billion in crypto transaction volume between July 2022 and June 2025, ranking second in Latin America behind Brazil.
Institutional Context and Regulatory Risk
Allowing banks to offer crypto custody and trading would channel this substantial retail demand through regulated entities, potentially offering consumers familiar compliance checks, clearer disclosures, and more robust security standards. However, the ultimate impact hinges on the central bank’s final framework, particularly regarding capital treatment for banks’ crypto exposures and the regulatory standards for digital asset custody. The integration of volatile assets into the traditional banking sector introduces complex risk management challenges for regulators globally.
The debate is also framed by the fallout from the Libra meme coin scandal in early 2025, where thousands of investors incurred losses following a significant price collapse after the token was publicly endorsed by President Javier Milei. That episode reinforced the need for enhanced regulatory vigilance in a market prone to high volatility and speculative activity. By bringing crypto services into the formal banking sector, the central bank aims to balance its pro-innovation stance with its mandate to safeguard financial stability and consumer protection.