Less than a year after its official launch in Argentina, Coinbase has decided to scale back certain aspects of its operations in the country. In an email widely shared on social media, the US-based cryptocurrency exchange informed its users that it will be suspending the ability to purchase or sell USDC stablecoins using Argentine pesos, effective January 31, 2026. Following this deadline, users will no longer be able to withdraw pesos to local banks or utilize fiat on-ramp services.
According to the company, this move is a 'deliberate pause' rather than a complete withdrawal, as it intends to reassess and eventually return with an enhanced product offering. It's worth noting that crypto-to-crypto trading functionalities will remain unaffected. Argentina was a key market in Coinbase's 2025 expansion efforts, after receiving regulatory approval from the country's National Securities Commission.
The country's high inflation rates and stringent capital controls have contributed to its status as one of Latin America's most active crypto markets, with approximately 5 million Argentinians using cryptocurrency on a daily basis. Despite this rollback, Coinbase has emphasized that it is not abandoning the Argentine market and is committed to developing a more robust product.
The company is also collaborating with local partners through the Base ecosystem, including the local crypto exchange Ripio, which launched an Argentine peso stablecoin called wARS in November last year. Meanwhile, Argentina's central bank is reportedly exploring the possibility of allowing banks to offer cryptocurrency services to their account holders, with new regulations potentially being introduced as early as April.