Argentina Considers Allowing Banks to Offer Crypto Services Amid Inflation Pressures

Source: DefiPlanet Original Title: Argentina Considers Allowing Banks to Offer Crypto Services Amid Inflation Pressures Original Link: https://defi-planet.com/2025/12/argentina-considers-allowing-banks-to-offer-crypto-services-amid-inflation-pressures/

Quick Breakdown

• Argentina’s central bank is considering allowing banks to provide crypto trading and custody services.
• The policy aims to provide regulated on-ramps, formal KYC/AML safeguards, and enhanced market oversight.
• Bank entry could boost competition, lower fees, and expand mainstream crypto adoption in the country.

Main Content

Argentina’s central bank is reportedly weighing the possibility of overturning its long-standing ban on traditional financial institutions offering cryptocurrency trading and custody services. If approved, the move would signal a significant regulatory shift, moving from outright prohibition to controlled integration as digital assets become increasingly embedded in everyday financial life.

Argentina’s central bank is considering lifting its ban on banks’ crypto activities, allowing trading and custody under a new regulatory framework. The move marks a shift from prohibition to oversight, aiming to bring BTC and stablecoin use into compliance and strengthen KYC/AML safeguards.

Inflation drives crypto into the banking sector

The Banco Central de la República Argentina (BCRA) is exploring a framework that would allow banks to facilitate crypto transactions while adhering to strict compliance standards. This development follows years of grassroots adoption, fueled by chronic inflation, peso depreciation, and tight foreign currency controls.

Many Argentines have turned to Bitcoin and dollar-backed stablecoins to protect savings and hedge against currency volatility, activities conducted mainly outside the traditional banking system. Opening regulated banking channels for crypto would provide formal on-ramps with robust KYC and AML safeguards, while giving the government greater oversight and the ability to tax a rapidly growing market.

A regulatory framework would also recognize digital assets’ role as an informal inflation hedge and create greater transparency for capital flows in a persistently unstable economy.

Banks poised to challenge crypto-native firms

If the policy shift moves forward, it could reshape Argentina’s crypto landscape. Currently dominated by independent exchanges and crypto-native VASPs, the market could see major banks leveraging their established customer bases and capital to become significant players. Their entry may boost competition, reduce fees, and increase mainstream adoption of digital assets.

However, lifting the ban will require a comprehensive regulatory overhaul. The BCRA would need to establish prudential rules addressing volatility management, liquidity exposure, and custody risks, potentially aligning with global standards like Basel guidelines for bank crypto operations. The key challenge will be fostering innovation while maintaining financial system stability.

Global players expand in Argentina

Meanwhile, a certain compliance platform has received approval from Argentina’s National Securities Commission (CNV) to operate as a Virtual Asset Service Provider (VASP). This milestone enables the company to offer services in accordance with the country’s regulatory framework, marking a significant step in its global expansion strategy.