Argentina’s central bank, the BCRA, has announced that financial institutions cannot allow their consumers to conduct transactions using digital assets, just days after two banks announced that they would allow crypto trading for their customers. Earlier this week, Banco Galicia, Argentina’s largest private bank by market capitalization, added the ability to buy and sell cryptocurrencies on its platform, which was quickly followed by domestic digital bank Burbank, which offered customers the option to purchase popular crypto-assets such as Bitcoin, Ether, USD Coin, and Ripple.

According to the BCRA statement, banks are barred from providing services for any digital assets that are not regulated by the central bank, and because there are presently no such digital assets regulated, the decision amounts to a de facto ban. The statement further emphasizes that the restriction encompasses investments whose profits are dictated by cryptocurrency movements.

Argentina’s central bank defines digital assets as “a digital representation of value or rights that are transmitted and stored electronically utilizing Distributed Ledger Technology (DLT) or other similar technology.”

“The measure ordered by the Board of Directors of the BCRA seeks to mitigate the risks associated with operations with these assets that could be generated for users of financial services, and for the financial system as a whole,” the central bank statement reads.

According to a Bloomberg report, Argentines are rapidly adopting cryptocurrencies as periodic currency crises and inflation of more than 50% yearly destroy the value of investments. According to blockchain analytics firm Chainalysis, the country is among the top ten in the world for crypto usage.

Argentina’s government signaled in March this year that it will restrict the use of cryptocurrencies as part of a nearly $45 billion (approximately Rs. 3,44,325 crore) debt restructuring agreement with the International Monetary Fund (IMF).

The government stated in a March 3 memorandum that it will “discourage the use of cryptocurrencies with a view to preventing money laundering, informality, and disintermediation,” in addition to other actions aimed at boosting the country’s financial resilience.

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