Argentina’s central bank, Banco Central de la República Argentina (BCRA), may soon lift its long-standing ban on regular banks offering crypto services. These services could include cryptocurrency trading or custody services. Currently, the country does not allow its banks to offer crypto services to their clients, as per a law passed in 2022. The move was to curb risks tied to unregulated crypto exchanges. 2022 saw the notorious FTX debacle, which is one of the most significant financial frauds of all time.

Will The Crypto Market React to Argentina’s Ban Lift?

Argentina’s ban on banks offering crypto is still in effect. The law to lift the ban has not yet been passed. However, there is a high chance that the cryptocurrency market will react positively to the ban lift.

Argentina’s President, Javier Milei, is expected to support the new cryptocurrency legislation. Milei is pro-Bitcoin (BTC), having stated, “With legal tender, they scam you with the inflationary tax. Bitcoin is the natural reaction against central bank scammers; to make money private again.“

However, Milei’s crypto image is not all clean. He was at the center of a cryptocurrency scandal earlier this year when he promoted the LIBRA crypto token. The memecoin’s price skyrocketed after Milei’s support. However, the rally was short-lived, and the asset’s price tanked soon after. Investors were furious and accused the Argentine President of a rug pull.

Also Read: Is President Trump Skipping Crypto In His Tech Agenda?

Nonetheless, the Banco Central de la República Argentina’s move to reintroduce cryptocurrency services in the country is a bullish development for the crypto sector. Given the rise in crypto support from financial institutions and several nations, it may prove to be a prudent move to allow banks to offer cryptocurrency services to clients. The crypto market is still quite fragile, and bullish news, like the one from Argentina, could boost investor sentiment.