Argentina is on the verge of a seismic shift in its financial landscape as its central bank, the Banco Central de la República Argentina (BCRA), drafts new regulations that could allow traditional banks to offer cryptocurrency trading and custody services. This move, reported by local outlet La Nación on December 5, 2025, would mark a dramatic change for a country where, until now, exchanges and fintech platforms have been the main gateways to the world of digital assets. If the process continues on track, approval could come as early as April 2026, according to one exchange operating in the country.
The proposal has been circulating quietly for months among exchanges, figures close to regulators, and a select group of bankers. It aligns with a broader government push to relax restrictions on crypto use and bring the booming, but largely informal, digital asset activity into the regulated financial system. The stakes for Argentina are unusually high. The country has faced years of punishing inflation and tight currency controls, driving many Argentines to seek stability in dollars and, increasingly, in cryptocurrencies. By some estimates, Argentines are now six times more likely to use crypto daily than residents of the average Latin American country—a statistic that underscores the depth of local demand.
Allowing banks to trade and hold crypto on behalf of clients could provide a new, more secure channel for this demand. Analysts suggest that regulated lenders can offer familiar on-ramps, clearer disclosures, and more robust compliance checks. These features may help digital assets shed their reputation as grey-market products and instead become mainstream investment options. However, the real impact will depend on how the central bank defines critical issues such as custody standards, capital requirements, and which tokens will be eligible for trading and custody.
This debate is taking place in the shadow of the notorious Libra meme-coin scandal, which shook confidence in Argentina’s crypto sector in February 2025. President Javier Milei, a vocal supporter of market liberalization and digital assets, posted on X (formerly Twitter) endorsing the Solana-based Libra token as a tool for "market-driven innovation" and economic liberation from the peso. The token’s price rocketed from fractions of a cent to over $4.50 within hours of his endorsement, briefly reaching a fully diluted valuation of $4.6 billion. But the euphoria was short-lived. The price collapsed by more than 96% in what investigators later described as a classic rug pull orchestrated by its creators at Kelsier Ventures. Thousands of everyday Argentines, many of whom interpreted the president’s message as a green light, were left with devastating losses estimated between $100 million and $251 million.
The Libra episode prompted widespread outrage and raised uncomfortable questions about the political promotion of speculative tokens. It also cast a long shadow over subsequent debates about how to regulate the crypto sector. Argentina’s central bank has a history of oscillating between tolerance and crackdowns. In 2022, the BCRA issued Communication A7506, which prohibited financial institutions from "carrying out or facilitating their clients’ operations with digital assets," effectively banning banks from offering crypto services. This hardline stance was partly a reaction to global events like the FTX collapse, one of the most significant financial frauds in recent memory, which spooked regulators everywhere.
But since 2023, after President Milei appointed new leadership at the central bank, there has been a marked shift toward a more pro-crypto stance. BCRA President Santiago Bausili has spoken publicly about the need for Argentina to embrace new financial technologies and to ensure that banks and fintech firms can compete on a level playing field. According to La Nación, the central bank is now seriously considering how to ease restrictions and allow banks to participate in the crypto economy.
Observers have drawn parallels between Argentina’s evolving regulatory landscape and recent changes in the United States. In January, the U.S. Securities and Exchange Commission (SEC) repealed Staff Accounting Bulletin 121 (SAB121), a rule that had hindered American banks from offering crypto custody services. The repeal sparked a wave of institutional adoption, with major Wall Street firms like Citi and State Street preparing to launch crypto custody in 2026. Europe, too, has seen more than a dozen banks offer crypto trading to retail customers, reflecting a global trend toward integrating digital assets into mainstream finance.
Argentina’s potential move is seen as a bullish signal for the country’s crypto sector. Market watchers expect that lifting the ban on banks offering crypto services could boost investor sentiment, especially given the rising support for digital assets from financial institutions and governments worldwide. As Cryptonews notes, "the Banco Central de la República Argentina’s move to reintroduce cryptocurrency services in the country is a bullish development for the crypto sector."
President Milei’s role in this process is complex. On one hand, he is a self-described proponent of Bitcoin and has publicly criticized central banks for what he calls "the inflationary tax." In his words: "With legal tender, they scam you with the inflationary tax. Bitcoin is the natural reaction against central bank scammers; to make money private again." On the other hand, his involvement in the Libra scandal has left many Argentines wary, with some accusing him of misleading the public and contributing to massive losses.
Despite these controversies, the central bank appears determined to test whether it can integrate the fast-growing crypto market into the regulated sector without importing too much volatility into the traditional financial system. The lessons of the Libra debacle loom large, and officials are acutely aware of the need for clear rules, strong oversight, and robust investor protections.
For now, the country’s ban on banks offering crypto services—established by a 2022 law—remains in effect. The law was originally passed to curb risks tied to unregulated crypto exchanges, especially in the wake of high-profile disasters like FTX. But momentum is building for change. The new draft regulations, if approved, would represent a significant departure from past policy and could position Argentina as a leader in Latin America’s rapidly evolving crypto economy.
As policymakers weigh their options, they face a delicate balancing act: fostering innovation and financial inclusion while protecting consumers from the kind of chaos that followed the Libra collapse. The coming months will be critical as Argentina tests whether it can bring the benefits of digital assets into the mainstream—without repeating the mistakes of the past.
