The Central Bank of the Argentine Republic (BCRA) has banned local credit institutions from providing services related to digital assets to customers. The regulator’s restriction also applies to cryptocurrency derivatives.

“The measure appointed by the BCRA Board of Directors aims to reduce the risks associated with transactions with these assets. They involve risks for users and the financial system as a whole.

In May 2021, the central bank and Argentina’s National Securities Commission warned citizens of the possible consequences of using cryptocurrencies. Recent regulators have defined it as “a digital representation of value or rights that is transmitted and stored electronically using blockchain or other similar technologies.”

Previously, Banco Galicia, one of the largest banks in Argentina, opened access to cryptocurrencies for customers. Users were able to purchase Bitcoin, Ethereum, XRP and USDC stablecoins.

Local neobank Brubank also announced the launch of its cryptocurrency service.

Recall that the International Monetary Fund added to the Argentine debt refinancing project a clause that prohibits the circulation of cryptocurrencies in the country.