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Coinbase Exits Argentina: Peso-to-USDC Trading Ends January 2026

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Coinbase knowledgeable Argentine customers on January 3, 2026, that it’ll discontinue peso-to-USDC buying and selling on its platform efficient January 31, marking a strategic retreat from native foreign money operations barely a 12 months after launching with regulatory approval.

The trade emphasised that crypto-to-crypto buying and selling stays absolutely operational whereas giving clients a 30-day window to transform and withdraw their pesos.

“At Coinbase we’re constantly reevaluating the merchandise we provide to make sure essentially the most environment friendly expertise attainable for our group,” the corporate said in an electronic mail to customers.

The announcement said that after January 31, buying or promoting USDC with Argentine pesos will now not be attainable.

However, the flexibility to purchase, promote, ship, and obtain cryptocurrencies throughout completely different digital belongings will stay uninterrupted.

Rapid Expansion Followed by Swift Contraction

Coinbase launched operations in Argentina on January 28, 2025, after receiving approval from the National Securities Commission (CNV) to function as a Virtual Asset Service Provider.

The trade appointed Matías Alberti, an skilled fintech skilled from firms akin to Buenbit and Clara, to guide regional operations, with regulatory compliance and safety as core priorities.

Argentina was seen as a compelling market alternative on the time, with financial challenges akin to high inflation and foreign money volatility driving widespread crypto adoption.

A Coinbase study notably revealed that 87% of Argentinians considered cryptocurrency as a path to monetary independence, whereas 79% expressed openness to receiving salaries in digital belongings.

This, the examine exhibits, makes the nation six occasions extra possible to make use of crypto each day than the typical Latin American nation.

The trade’s optimistic market entry coincided with Argentina increasing crypto funding alternatives by means of CNV approval of U.S. exchange-traded funds, together with Bitcoin and Ethereum spot ETFs beneath the CEDEAR program, ending a six-year prohibition beneath Law No. 27440.

Political Scandal Reshapes Argentina’s Crypto Landscape

Coinbase’s withdrawal follows devastating political fallout from the Libra meme coin scandal that erupted in February 2025 when President Javier Milei endorsed the Solana-based token on social media.

The coin surged from fractions of a cent to over $4.50 inside hours earlier than collapsing by greater than 96%, with losses estimated at between $100 million and $251 million, after what investigators described as a basic pump-and-dump scheme.

Argentina’s federal court froze over $507,000 in assets belonging to U.S. businessman Hayden Davis and two crypto operators as a part of an increasing fraud investigation that drew hyperlinks to Milei’s internal circle.

Prosecutors traced transactions and alleged that intermediaries transformed crypto into fiat for Davis and Argentine lobbyists Mauricio Novelli and Manuel Terrones Godoy, with one key switch of $507,500 occurring simply 42 minutes after Milei posted a selfie with Davis.

Argentina’s lower house voted 128-93 in April 2025 to launch a congressional investigation summoning Economy Minister Luis Caputo, Justice Minister Mariano Cúneo Libarona, and National Securities Commission head Roberto Silva to look at potential misconduct surrounding the token’s promotion and collapse.

Despite political turbulence that dropped Milei’s approval ranking from 47.3% to 41.6%, his pro-crypto get together, La Libertad Avanza, scored a shock victory in Argentina’s midterm elections, successful 40.68% of the nationwide vote.

Broader Strategic Shift Amid Regulatory Uncertainty

The discontinuation of peso buying and selling comes as Argentina’s central financial institution reportedly weighs regulations that will enable conventional banks to supply crypto buying and selling and custody companies, probably accredited round April 2026, in accordance with native exchanges.

While Coinbase is drawing again from the nation, it’s rising in different international locations and verticals.

Earlier this month, Coinbase CEO Brian Armstrong announced an “every part trade” technique for 2026, combining crypto, equities, prediction markets, and commodities globally whereas partnering with federally regulated platform Kalshi for event-based markets.

Coinbase’s determination to take care of crypto buying and selling whereas exiting peso operations suggests the trade may be repositioning for regulatory adjustments moderately than abandoning the Argentine market totally.

However, some customers and the group have criticized the motion, with the lead DevRel at Talent Protocol calling the transfer “wild.”

“One of the best crypto adoption international locations is now blocked from accessing the onchain world economic system. Makes zero sense,” he mentioned.

The publish Coinbase Exits Argentina: Peso-to-USDC Trading Ends January 2026 appeared first on Cryptonews.

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