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

On January 3, 2026, Coinbase announced it will end peso-to-USDC trading for Argentine users on January 31, 2026, effectively withdrawing from local currency operations shortly after its entrance into the market. While crypto-to-crypto trading remains accessible, this move follows major political and economic challenges within the country.

Key Takeaways

Coinbase will stop peso-to-USDC trading on January 31, 2026, but crypto-to-crypto trading continues.
The exchange started operations in Argentina in January 2025, aiming to tap into a promising market.
Political turmoil linked to the Libra meme coin scandal impacted public trust in cryptocurrencies.
Regulatory changes are being considered by Argentina’s central bank, which may open doors for traditional banks in crypto.
Coinbase is focusing on broader strategies in other regions while adjusting its approach in Argentina.

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

Coinbase Halts Peso Trading in Argentina

On January 3, 2026, Coinbase informed its Argentine users it would be halting peso-to-USDC trading on its platform, effective January 31. This decision marks a significant step back from local currency operations, just a year after its official launch backed by regulatory approval.

The exchange clarified that while trading between cryptocurrencies remains fully operational, users will have a 30-day period to convert and withdraw their Argentine pesos.

“At Coinbase, we are continually assessing our product offerings to provide the best experience possible for our community,” the company stated in an email to its users.

After January 31, users will no longer be able to buy or sell USDC with Argentine pesos. However, they can still buy, sell, send, and receive various cryptocurrencies without interruption.

Rapid Growth Followed by a Swift Exit

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

To oversee regional operations, the exchange appointed Matías Alberti, an experienced fintech expert from companies like Buenbit and Clara, who prioritized regulatory compliance and security.

Argentina represented a strategic opportunity at the time due to its economic difficulties, such as high inflation and volatile currency, which drove many to adopt cryptocurrencies.

A Coinbase study indicated that 87% of Argentinians viewed cryptocurrency as a means to achieve financial independence, with 79% willing to receive salaries in digital assets. This made Argentina six times more likely to have daily cryptocurrency usage compared to the average Latin American country.

The exchange’s optimistic entry coincided with the CNV approving U.S. exchange-traded funds, including Bitcoin and Ethereum ETFs under the CEDEAR program, concluding a six-year prohibition under Law No. 27440.

Political Scandals Influence Argentina’s Crypto Scene

Coinbase's withdrawal was influenced by the political fallout from the Libra meme coin scandal that began in February 2025. This scandal followed President Javier Milei's endorsement of a Solana-based token on social media, which led to a sharp price spike followed by a significant crash. The decline was attributed to what investigators described as a classic pump-and-dump scheme, with losses estimated between $100 million and $251 million.

As part of a fraud investigation, Argentina's federal court frozen over $507,000 in assets belonging to U.S. businessman Hayden Davis and two cryptocurrency operators linked to Milei’s inner circle. Prosecutors discovered transactions involving conversions of cryptocurrency into fiat for various lobbyists, with one key transaction occurring just 42 minutes after a promotional post by Milei.

In April 2025, Argentina’s lower house voted to commence a congressional investigation into the events surrounding the token's promotion and its subsequent crash.

Despite the political chaos, which saw Milei’s approval ratings drop, his pro-crypto party, La Libertad Avanza, achieved a surprising 40.68% of the national vote in the midterm elections.

Strategic Shifts Amid Regulatory Changes

The decision to stop peso trading comes as Argentina's central bank considers regulations that may permit traditional banks to offer cryptocurrency trading and custody services, potentially set for approval around April 2026, according to local exchanges.

While Coinbase is retracting from Argentina, it is expanding its operations in other countries and sectors. CEO Brian Armstrong recently announced an “everything exchange” strategy for 2026, which aims to integrate cryptocurrencies, stocks, prediction markets, and commodities globally, in partnership with the federally regulated platform Kalshi for event-based markets.

Coinbase's choice to maintain its crypto trading service while exiting peso operations suggests a potential repositioning in anticipation of regulatory changes rather than a complete exit from the Argentine market.

However, this move has drawn criticism from some users and community members, with a leading developer at Talent Protocol labeling it as “wild.” “One of the highest crypto adoption countries is now blocked from accessing the on-chain global economy. Makes zero sense,” he commented.