Coinbase Ends Peso-to-USDC Trading in Argentina After One Year

Coinbase notified Argentine users on December 31, 2025, that it will stop peso-to-USDC trading operations effective January 31, 2026, marking an abrupt exit from local currency services barely one year after launching operations in the country.

The move affects only buying and selling USDC with Argentine pesos. Users will retain full access to send, receive, and trade cryptocurrencies across different digital assets. Coinbase stated the decision followed a review of its local operations, describing it as a “deliberate pause” rather than a permanent market exit.

Launch and Rapid Retreat

Coinbase entered Argentina on January 28, 2025, after receiving Virtual Asset Service Provider registration from Argentina’s National Securities Commission (CNV). The exchange appointed Matías Alberti, a fintech veteran from Buenbit and Clara, to lead regional operations with regulatory compliance as a core priority.

At launch, Coinbase highlighted Argentina’s massive crypto adoption. According to a company study, 87% of Argentinians viewed cryptocurrency as a path to financial independence, while 79% expressed openness to receiving salaries in digital assets. The country has an estimated five million daily cryptocurrency users, making it six times more likely to use crypto daily than the average Latin American nation.

Source: @criptolawyer

The exchange’s optimistic market entry coincided with Argentina expanding crypto investment opportunities through CNV approval of U.S. Bitcoin and Ethereum spot ETFs under the CEDEAR program, ending a six-year prohibition under Law 27,440.

Political Scandal Clouds Crypto Landscape

Coinbase’s withdrawal follows devastating political fallout from the LIBRA memecoin scandal that erupted in February 2025. President Javier Milei promoted the Solana-based token on social media on February 14, 2025. The coin surged from fractions of a cent to over $4.50 within hours before collapsing by more than 96%.

Losses were estimated between $100 million and $251 million after what investigators described as a classic pump-and-dump scheme. Token creators held 70% of the total supply and abruptly sold their holdings once the price peaked. Hayden Davis, CEO of Kelsier Ventures and a key player behind the token, admitted to cashing out $100 million shortly after launch.

Argentina’s lower house voted 128-93 in April 2025 to launch a congressional investigation. The inquiry summoned Economy Minister Luis Caputo, Justice Minister Mariano Cúneo Libarona, and National Securities Commission head Roberto Silva to examine potential misconduct. A federal court froze over $507,000 in assets belonging to Davis and two crypto operators.

The scandal, dubbed “Cryptogate,” represented the first major crisis of Milei’s presidency according to The Economist. Despite political turbulence that dropped Milei’s approval rating from 47.3% to 41.6%, his pro-crypto party scored a surprise victory in Argentina’s midterm elections, winning 40.68% of the national vote.

Regulatory Uncertainty and Banking Challenges

Ana Gabriela Ojeda, a Latin American Web3 advocate, pointed to unclear regulation, reliance on correspondent banks, high compliance costs, and limited transaction volumes as contributing factors.

“It is not a signal against crypto or against stablecoins, but rather a demonstration of the structural challenges of integrating local financial systems in volatile markets,” Ojeda wrote.

The discontinuation of peso trading comes as Argentina’s central bank reportedly weighs regulations that would allow traditional banks to offer crypto trading and custody services. According to La Nación, the new rules could be ready as soon as April 2026, potentially transforming the landscape Coinbase just exited.

Market Remains Competitive Despite Exit

Argentina continues to lead Latin America in cryptocurrency adoption. Recent data shows 19.8% of the population owns digital assets, surpassing Brazil at 18.6%. Argentina accounts for 61.8% of stablecoin transaction volume in Latin America, underscoring the critical role these assets play in the country’s financial ecosystem.

While Coinbase withdraws from peso operations, competitors are expanding. Crypto lender Nexo acquired Buenbit in December 2025 for an undisclosed amount. The deal gives Nexo access to Buenbit’s CNV-registered operations and over one million users in Argentina and Peru. Buenos Aires will serve as Nexo’s Latin American headquarters with plans to expand into Mexico.

Ripio, a Latin American exchange with 25 million users, launched wARS in November 2025, a stablecoin pegged 1:1 to the Argentine peso. The token operates on Ethereum, Coinbase’s Base network, and World Chain, enabling users to transfer funds globally without converting to U.S. dollars.

Industry observers noted the irony of Coinbase exiting one of the world’s highest crypto adoption markets. The lead DevRel at Talent Protocol called the move “wild,” stating that “one of the highest crypto adoption countries is now blocked from accessing the onchain global economy.”

CEO Announces Broader Strategy Shift

On December 31, 2025, Coinbase CEO Brian Armstrong announced an “everything exchange” strategy for 2026, combining crypto, equities, prediction markets, and commodities globally. The company partnered with federally regulated platform Kalshi for event-based markets.

Coinbase’s decision to maintain crypto trading while exiting peso operations suggests the exchange might be repositioning for regulatory changes rather than abandoning the Argentine market entirely. The company manages $193 billion in digital holdings globally and has secured partnerships with major institutions including Citi for digital asset payment solutions.

The Bottom Line

Coinbase’s exit from Argentine peso operations highlights the persistent gap between cryptocurrency demand and traditional finance infrastructure in emerging markets. With competitors like Nexo and Ripio expanding their presence and Argentina’s central bank potentially opening crypto services to traditional banks by April 2026, the market remains dynamic despite Coinbase’s retreat. The exchange’s 30-day withdrawal window closes January 31, 2026, after which Argentine users will need alternative platforms to convert between pesos and stablecoins.