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Argentina’s Central Bank (BCRA) is drafting rules to repeal its May 2022 prohibition, potentially allowing traditional banks to offer cryptocurrency trading and custody services under a stringent new framework. This shift, reported December 8, 2025, aligns with President Javier Milei’s pro-crypto stance and aims to formalize the $93.9 billion in crypto volume (July 2022–June 2025), second-highest in Latin America per Chainalysis. Currently, trading thrives on exchanges like Ripio amid 117.8% annual inflation (down from 211.4% in 2023), but banks are sidelined to curb money laundering and instability.
Why Now?
Milei’s libertarian agenda, including free currency competition and lifting foreign exchange controls by 2025, drives this pivot. Post-IMF bailout (2017, restructured 2022), restrictions echoed global lender demands, but surging stablecoin use (e.g., USDT for hedging peso devaluation) demands regulated channels. Banks like Galicia have piloted services informally; full approval could integrate crypto into apps, boosting KYC/AML via CNV’s VASP registry (full effect December 31, 2025).
Economic Upsides
1. **Inclusion Surge**: 30% of Argentines hold crypto; bank access via familiar apps could onboard millions, per Chainalysis, enhancing financial sovereignty.
2. **Investor Magnet**: Regulated custody attracts institutions, potentially channeling foreign capital and stabilizing volatility—vital as inflation hovers at 31.3% monthly.
3. **Revenue Boost**: Formalizes shadow trading, optimizing taxes via “blanqueo” amnesty (ends September 2025) and CRS 2.0 digital asset reporting.
Hurdles Ahead
Challenges include Basel-aligned capital rules for volatility, cybersecurity mandates, and post-Libra meme coin scandal (February 2025) scrutiny on token eligibility. AML/CFT compliance is non-negotiable, with UIF equating VASPs to banks. Experts warn of operational risks like hacks, but see it curbing informal OTC flows.
Global Alignment
This mirrors Switzerland’s bank custody models, Singapore’s MAS guidelines, and U.S. OCC approvals, positioning Argentina as a LatAm hub amid $180B global ETP AuM. X buzz echoes optimism: “Gradually, then suddenly” for mass adoption.
In sum, BCRA’s proposal bridges TradFi and crypto, fostering inclusion and oversight in a $3T market. Approval could unlock trillions in compliant flows, but execution demands precision—watch for 2026 rollout.
