The Central Bank of Argentina banned banks from offering cryptocurrencies to customers

The Central Bank of the Argentine Republic (BCRA) has banned local credit institutions from offering digital asset-related services to customers. The regulator's restriction applies, among other things, to cryptocurrency derivatives.

"The measure appointed by the BCRA Board of Directors is aimed at reducing the risks associated with operations with these assets. They entail risks for users and the financial system as a whole," the statement says.

In May 2021, the central bank and the National Securities Commission of Argentina warned citizens about the possible consequences of using cryptocurrencies. The latest regulators defined it as "a digital representation of value or rights that is transmitted and stored electronically using blockchain or other similar technology."

Earlier, one of the largest banks in Argentina — Banco Galicia — opened access to cryptocurrencies to customers. Users have the opportunity to purchase Bitcoin, Ethereum, XRP and USDC stablecoin.

The launch of the cryptocurrency service was also announced by the local neobank Brubank.

Recall that the International Monetary Fund has included in the project of refinancing Argentina's debt a clause implying a ban on the circulation of cryptocurrencies in the country.