Coinbase Takes a Step Back in Argentina: What's Next for Crypto?

Coinbase has decided to pause its peso-based services in Argentina, just under a year after its launch. However, this isn't a full withdrawal. The company will continue to offer crypto services while it works on a better approach to local financial operations.

Key Changes

• Effective January 31, 2026, users will no longer be able to:
• Buy or sell USDC with Argentine pesos.
• Withdraw funds to local bank accounts.
• Crypto-to-crypto trading will remain available.
• Users have until the cutoff date to complete any peso-based USDC transactions and withdrawals.

Why the Change?

Running local fiat operations can be challenging, especially in a country with unclear regulations and high compliance costs. Ana Gabriela Ojeda, a prominent figure in Latin America's Web3 space, noted that these issues are more about the local financial system than crypto itself.

Coinbase's Continued Presence

Despite this pause, Coinbase isn't leaving Argentina entirely. It plans to stay connected through Base, its Ethereum layer-2 network, and continue collaborating with local partners like Ripio.

Argentina's Central Bank Considerations

Meanwhile, Argentina's central bank is considering allowing traditional banks to trade cryptocurrencies again. This would be a significant shift from 2022, when they banned banks from offering crypto services due to perceived risks.