Less than a year after officially entering the market, cryptocurrency exchange Coinbase has suspended its local fiat operations in Argentina and reduced its peso-based services while maintaining crypto functionality.
According to a report from Forbes Argentina, Coinbase informed users that it will temporarily withdraw from maintaining local services due to an operational review. The company described the move as a “deliberate pause” aimed at reviewing its approach and returning to a more sustainable product offering.
This change primarily affects statutory rails. Starting January 31, 2026, users will no longer be able to use Argentine Pesos (ARS) to buy or sell USDC (USDC) or withdraw funds to local bank accounts. Coinbase told users they have 30 days to complete peso-based USDC transactions and withdrawals before the closing date.
However, cross-cryptocurrency activity will continue to work. Coinbase said users will continue to be able to buy, sell, send and receive digital assets, and customer funds will not be affected by this decision. The company also emphasized that the suspension does not mean a permanent departure from the country.
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Coinbase suspends fiat currency rails in Argentina
Ana Gabriela Ojeda, a prominent voice in Latin America's Web3 space, said in a post on X that such decisions are typically made when local fiat operations become too complex, pointing to opaque regulations, dependence on correspondent banks, high compliance costs, and limited trading volumes.
“This is not a signal against cryptocurrencies or stablecoins, but rather points to the structural challenges of integrating regional financial systems in volatile markets,” she wrote.
Coinbase suspends fiat currency rails in Argentina. sauce: Ana Gabriela Ojeda
Despite the suspension of fiat trading, Coinbase plans to maintain a presence in the country through Base, the Ethereum layer 2 network. Forbes Argentina reported that Coinbase will continue to work with local partners, including crypto exchange Lipio, through Base-related initiatives.
Coinbase announced its launch in Argentina in early 2025 after spending much of the previous year preparing to enter the market.
Cointelegraph reached out to Coinbase for comment, but did not receive a response at the time of publication.
Related: Argentina's state-run energy giant considers virtual currency payments for fuel: report
Argentina considers allowing banks to trade in cryptocurrencies
Argentina's central bank is reportedly considering allowing traditional banks to trade in cryptocurrencies. Argentina's central bank is drafting new rules to allow banks to directly engage with digital assets, but the timeline and final scope remain unclear.
The move is a significant break from 2022, when the central bank banned financial institutions from offering crypto trading after major banks considered digital asset services. At the time, regulators cited risks to users and the broader financial system.
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