Argentine Central Bank Bans Payment Service Providers from Carrying Out and Facilitating Crypto-Asset Transactions

On May 4, 2023, the Argentine Central Bank (BCRA) issued Communication "A" 7759, which established that "payment service providers offering payment accounts (PSPCP) shall not carry out or facilitate their clients the execution of transactions with digital assets –including crypto-assets and those with yields determined based on the variations that they register– that are not authorized by a competent national authority or by the BCRA". With this Communication, the BCRA extends to PSPCPs the prohibition imposed on financial institutions established in May last year through Communication "A" 7506 .

The BCRA published a press release on its website just minutes before announcing the measure. There, it clarified that the regulation prevents PSPCPs from carrying out this type of transactions by themselves and from offering to initiate the transactions in their apps or websites.

In this sense, the BCRA clarified in the press release that "offering or facilitating means making automated purchase buttons available for users". Further, the BCRA stated that "persons concerned must carry out the transactions on their own".

As for the grounds for the measure, the BCRA stated that it "seeks to mitigate the risks that transactions with these assets could cause to users of financial services and to the national payment system".

Finally, in the press release, the BCRA referred again to the alert published in May 2021 together with the Argentine Securities and Exchange Commission.