By Staff Writer
Coinbase has suspended its peso-based fiat services in Argentina, scaling back local currency operations less than a year after launching in the country. The decision affects transactions involving Argentine pesos, while Coinbase’s core crypto-to-crypto services remain fully operational.
According to the exchange, the move follows an internal review of its local operations. From January 31, 2026, Argentine users will no longer be able to buy or sell USDC using pesos or withdraw funds to local bank accounts.
Coinbase has given customers a 30-day window to complete peso-based USDC trades and withdrawals before the cutoff.
Coinbase said that crypto-to-crypto activity (including buying, selling, sending, and receiving digital assets) will continue without interruption.
The exchange added that customer funds remain safe and unaffected by the suspension of fiat services.
The company stressed that the pause does not represent a permanent exit from Argentina. A Coinbase spokesperson told Bloomberg Línea that the decision is intended to allow the company to return at a later stage with a “stronger and more sustainable product offering.”
The suspension highlights the challenges of maintaining local fiat payment rails in Argentina, where high inflation, capital controls, and regulatory uncertainty continue to complicate banking integrations.
Ana Gabriela Ojeda, a figure in Argentina’s Web3 ecosystem, said such pullbacks are often driven by unclear regulations, reliance on correspondent banking relationships, high compliance costs, and limited transaction volumes through formal financial channels. She noted that the move is not a reflection of crypto demand but rather the structural difficulties of integrating local financial systems in volatile markets.
Despite the suspension of peso-based services, Coinbase plans to maintain a presence in Argentina through Base, its Ethereum layer-2 network. According to Forbes Argentina, the company will continue collaborating with local partners, including crypto exchange Ripio, on Base-related initiatives.
Coinbase entered the Argentine market in early 2025 after securing Virtual Asset Service Provider (VASP) registration from the National Securities Commission.
The move comes during a volatile period for Argentina’s crypto sector, marked by heightened political scrutiny and regulatory uncertainty. While Coinbase has not linked its decision to recent political developments, ongoing regulatory changes could influence whether local fiat services are reinstated in the future.
For now, Coinbase’s strategy in Argentina is focused on serving crypto-native demand, reflecting a broader trend in high-inflation economies where exchanges prioritise digital asset usage over traditional banking integrations.
