"Central Bank of Argentina Reviewing Allowing Banks to Offer Virtual Asset Services"

The Central Bank of Argentina (BCRA) is reviewing plans to allow commercial banks to provide virtual asset (cryptocurrency) services.

On the 8th, according to crypto-focused media Coincu, the BCRA is reportedly internally discussing easing current regulations that prohibit banks from offering virtual asset trading and custody services. While the central bank has restricted banks' handling of virtual assets, it is said to be recently reviewing a structure that would allow operations under regulation.

In Argentina, against a backdrop of high inflation, the use of virtual assets by individuals and companies has expanded. Market observers say the policy change could lead to strengthened investor protection and improved compliance with anti-money laundering (AML) regulations. They also assess that permitting bank participation could help increase transparency of fund flows and secure tax revenue.

However, there has been no official announcement from the government or the central bank yet, and market reactions to the discussions are also cautious.

The outlet said, "Changes in Argentina's regulatory environment could expand opportunities for financial institutions to participate in virtual asset services," and "formalization in the future could lead to enhanced transparency and securing tax bases."