Crypto exchange Coinbase has paused its local fiat operations in Argentina less than a year after formally entering the market, scaling back peso-based services while keeping its crypto functionality.
According to a report by Forbes Argentina, Coinbase informed users that it is temporarily stepping back from maintaining local services following a review of its operations. The company described the move as a “deliberate pause” aimed at reassessing its approach and returning with a more sustainable product offering.
The change primarily affects fiat rails. From Jan. 31, 2026, users will no longer be able to buy or sell USDC (USDC) using Argentine pesos (ARS) or withdraw funds to local bank accounts. Coinbase told users they have a 30-day window to complete peso-based USDC transactions and withdrawals before the cutoff date.
However, crypto-to-crypto activity remains operational. Users can continue to buy, sell, send and receive digital assets, and Coinbase said customer funds are unaffected by the decision. The company also stressed that the pause does not imply a permanent exit from the country.
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Coinbase halts fiat rails in Argentina
In a post on X, Ana Gabriela Ojeda, a well-known voice in Latin America’s Web3 space, said such decisions typically come when local fiat operations become too complex, pointing to unclear regulation, reliance on correspondent banks, high compliance costs and limited transaction volumes.
“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,” she wrote.
Despite the pause in fiat operations, Coinbase plans to maintain a presence in the country through Base, its Ethereum layer-2 network. Forbes Argentina reported that Coinbase will continue working with local partners, including crypto exchange Ripio, through Base-related initiatives.
Coinbase announced its Argentina launch in early 2025 after spending much of the previous year preparing its market entry.
Cointelegraph reached out to Coinbase for comment, but had not received a response at the time of publication.
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Argentina weighs allowing banks to trade crypto
Argentina’s central bank is reportedly considering allowing traditional banks to trade cryptocurrencies. The Banco Central de la República Argentina is drafting new rules that could permit banks to engage directly with digital assets, though the timeline and final scope remain unclear.
The move would mark a sharp break from 2022, when the central bank banned financial institutions from offering crypto trading after major banks explored digital asset services. At the time, regulators cited risks to users and the broader financial system.
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