Coinbase informed Argentine users on January 3, 2026, that it will discontinue peso-to-USDC trading on its platform effective January 31, marking a strategic retreat from local currency operations barely a year after launching with regulatory approval.
The exchange emphasized that crypto-to-crypto trading remains fully operational while giving customers a 30-day window to convert and withdraw their pesos.
“At Coinbase we are continuously reevaluating the products we offer to ensure the most efficient experience possible for our community,” the company stated in an email to users.
The announcement stated that after January 31, purchasing or selling USDC with Argentine pesos will no longer be possible.
However, the ability to buy, sell, send, and receive cryptocurrencies across different digital assets will remain 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 operate as a Virtual Asset Service Provider.
The exchange appointed Matías Alberti, an experienced fintech professional from companies such as Buenbit and Clara, to lead regional operations, with regulatory compliance and security as core priorities.
Argentina was seen as a compelling market opportunity at the time, with economic challenges such as high inflation and currency volatility driving widespread crypto adoption.
A Coinbase study particularly revealed that 87% of Argentinians viewed cryptocurrency as a path to financial independence, while 79% expressed openness to receiving salaries in digital assets.
This, the study shows, makes the country six times more likely to use crypto daily than the average Latin American nation.
The exchange’s optimistic market entry coincided with Argentina expanding crypto investment opportunities through CNV approval of U.S. exchange-traded funds, including Bitcoin and Ethereum spot ETFs under the CEDEAR program, ending a six-year prohibition under 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 within hours before collapsing by more than 96%, with losses estimated at between $100 million and $251 million, after what investigators described as a classic 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 part of an expanding fraud investigation that drew links to Milei’s inner circle.
Prosecutors traced transactions and alleged that intermediaries converted crypto into fiat for Davis and Argentine lobbyists Mauricio Novelli and Manuel Terrones Godoy, with one key transfer of $507,500 occurring just 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 examine potential misconduct surrounding the token’s promotion and collapse.
Despite political turbulence that dropped Milei’s approval rating from 47.3% to 41.6%, his pro-crypto party, La Libertad Avanza, scored a surprise victory in Argentina’s midterm elections, winning 40.68% of the national vote.
Broader Strategic Shift Amid Regulatory Uncertainty
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, potentially approved around April 2026, according to local exchanges.
While Coinbase is drawing back from the country, it is growing in other countries and verticals.
Earlier this month, Coinbase CEO Brian Armstrong announced an “everything exchange” strategy for 2026, combining crypto, equities, prediction markets, and commodities globally while partnering 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.
However, some users and the community have criticized the action, with the lead DevRel at Talent Protocol calling the move “wild.”
“One of the highest crypto adoption countries is now blocked from accessing the onchain global economy. Makes zero sense,” he said.
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