Argentina's central bank policy reversal! 2026 Banks will fully open up crypto transactions

The Central Bank of Argentina (BCRA) is planning to significantly adjust the direction of crypto regulation, considering allowing domestic banks to provide crypto trading and custody services, symbolizing a major policy reversal since the blanket ban in 2022, and the relevant draft will be completed by April 2026 at the earliest. If the regulations are finalized, Argentine banks can integrate Bitcoin and stablecoin transactions into existing accounts, and people can buy and sell cryptocurrencies in familiar apps.

Hyperinflation forces out the crypto economy: Why the Central Bank of Argentina must loosen restrictions

! Global Crypto Activity Index

(Source: Chainalysis)

Argentina has faced hyperinflation and exchange rate controls for many years, making people generally rely on crypto assets to fight currency depreciation. Before President Milley took office, Argentina’s annual inflation rate soared to 211%, and there was a huge gap between the peso’s exchange rate against the US dollar on the black market and the official price. In this extreme economic environment, cryptocurrencies, especially stablecoins, have become the preferred tools for people to preserve value and transfer money across borders.

Chainalysis data reveals 1000K active wallets and $910M in trading volume, making Argentina one of the most active crypto markets in Latin America. This figure means that more than a quarter of Argentina’s population already has a crypto wallet, and the crypto economy has moved from the fringes to the mainstream. In this context, the central bank’s ban not only fails to prevent crypto adoption, but instead pushes large amounts of money to overseas platforms and gray markets, weakening regulatory effectiveness.

What’s more, the banking system is marginalized in this crypto revolution. Before 2022, several Argentine banks had tested encryption features within the app, but central bank bans forced them to stop all services. This has led people to turn to pure crypto platforms such as Lemon, Ripio and Binance, and traditional banks have lost a large amount of young customers and transaction fee revenue. Faced with the fait accompli of the crypto economy, the Central Bank of Argentina’s choice is no longer “whether to allow” but “how to regulate”.

The Milley government’s financial liberalization strategy and international benchmarking

Since the new president, Javier Milley, took office at the end of 2023, the official attitude has clearly become more open. Milley has long advocated financial liberalization, encouraged people to use alternative currencies, and even proposed “closing the central bank” and “dollarization”. While these extreme claims have not yet materialized, the gradual easing of strict restrictions previously cited by the Central Bank of Argentina on the grounds of “financial stability” indicates a change in policy direction.

This policy shift is also in line with international trends. After the United States revoked the SEC’s SAB 121 in 2025, major banks such as Citi and State Street restarted their crypto custody plans. European banks are also gradually incorporating crypto transactions and wallets into retail customer service. The Hong Kong Monetary Authority allowed banks to provide crypto custody to accredited investors in 2024, and the MAS has also established a clear framework for digital payment token transactions.

The central bank’s approach is seen as an attempt to keep pace with global financial innovation and reduce people’s reliance on offshore platforms. More importantly, regulatory relaxation can integrate crypto transactions into the formal financial system, improving tax transparency and anti-money laundering efficiency. Allowing banks to provide services under strict supervision is more conducive to financial stability than allowing funds to flow to unregulated overseas exchanges.

Three Core Requirements of the New Regulatory Framework

Independent legal entity structure: Banks must establish independent companies and register as “virtual asset service providers (PSAVs)” to provide crypto services

High Standards of Risk Control: Adopts higher capital, information security, and liquidity standards, fully complying with KYC and AML regulations

Regulatory Coordination: Aligns with requirements set by the Argentine Securities Commission (CNV), ensuring multiple oversights

The return of banks will detonate the multiplier effect of adoption

Industry insiders generally believe that if Argentine banks fully open up crypto services, the country’s crypto adoption will usher in a qualitative change. Manuel Ferrari, chairman of the Bitcoin Argentina Association, pointed out that traditional banks have a large number of authorized accounts and distribution channels, and if mainstream banks such as Galicia, Santander or Nación join, they may quickly amplify the exposure of crypto assets several times.

The bank’s strength lies in user trust and technological infrastructure. For people who have not yet been exposed to cryptocurrencies, buying Bitcoin in familiar banking apps is far more secure than downloading unfamiliar exchange apps. The KYC process already completed by the bank can be extended directly to crypto transactions, and users do not need to re-upload identification documents. In addition, banks can provide instant conversion between fiat currency and cryptocurrency, eliminating the current friction between exchanges and bank accounts.

Crypto trading platforms are also optimistic about this. Lemon’s head of public affairs believes that a more open financial ecosystem fosters innovation and financial inclusion. Bitso representatives also emphasized that the participation of banks can increase public confidence and reduce education costs. A large private bank anonymously pointed out that crypto commodities will be a natural extension of traditional banking products, not a substitute. This shift in attitude means that the integration of traditional finance and the crypto industry may enter deep waters.

Key Challenges in Technology Integration and Tax Implementation

Despite market expectations, the new system still faces several practical challenges. According to current regulations, banks need to set up independent companies to provide relevant services, and most banks prefer to cooperate with existing crypto platforms to reduce technology and custody costs. Past experience reminds regulators of the need to avoid technology gaps. Before 2022, some banks briefly launched crypto trading services, but they did not support cross-platform transfers, withdrawals, or wallet functions, resulting in an incomplete user experience and rapid removal.

Taxation is also a central factor influencing adoption. If Argentine banks are subject to different tax regimes, it may weaken the incentives to cooperate with exchanges and compress the actual income earned by users. In addition, crypto integration has been extended to other scenarios. For example, state-owned oil company YPF is exploring the adoption of encrypted checkout at gas stations, using platforms like Lemon, Ripio or Binance as intermediaries. This means that crypto assets may not only return to banks, but may also infiltrate people’s daily lives.