On January 3, 2026, Coinbase notified its Argentine users that it will cease peso-to-USDC trading on its platform, effective January 31, representing a strategic withdrawal from local currency operations just a year after its launch with regulatory endorsement.
The exchange highlighted that crypto-to-crypto trading continues to function without interruption, while providing customers with a 30-day period to convert and withdraw their pesos.
“At Coinbase, we are constantly reassessing the products we provide to ensure the most efficient experience possible for our community,” the company conveyed in an email to users.
The announcement indicated that after January 31, it will no longer be feasible to buy or sell USDC using Argentine pesos.
Nevertheless, the ability to buy, sell, send, and receive cryptocurrencies across various digital assets will remain uninterrupted.
@coinbase announced that starting January 2026, it will stop offering the on/off ramp ARS
USDC in Argentina
The email sent to users does not specify the reasons and does not imply a shutdown of crypto operations nor does it affect the custody of funds.
Such decisions often emerge… pic.twitter.com/FCa5YfAzQ3— Criptolawyer (@criptolawyer) December 31, 2025
USDC in Argentina Rapid Growth Followed by Quick Decline
Coinbase commenced its operations in Argentina on January 28, 2025, after obtaining authorization from the National Securities Commission (CNV) to function as a Virtual Asset Service Provider.
The exchange appointed Matías Alberti, a seasoned fintech expert from firms like Buenbit and Clara, to oversee regional operations, prioritizing regulatory compliance and security.
Argentina was regarded as a promising market opportunity at the time, with economic difficulties such as high inflation and currency instability propelling widespread cryptocurrency adoption.
A study by Coinbase revealed that 87% of Argentinians perceived cryptocurrency as a means to achieve financial independence, while 79% showed willingness to receive salaries in digital assets.
This data indicates that the country is six times more likely to utilize crypto daily compared to the average Latin American nation.
The exchange’s optimistic entry into the market coincided with Argentina broadening crypto investment opportunities through CNV approval of U.S. exchange-traded funds, including Bitcoin and Ethereum spot ETFs under the CEDEAR program, concluding a six-year ban under Law No. 27440.
Political Scandal Alters Argentina’s Crypto Landscape
Coinbase’s exit follows significant political repercussions from the Libra meme coin scandal that erupted in February 2025 when President Javier Milei supported the Solana-based token on social media.
The coin skyrocketed from fractions of a cent to over $4.50 within hours before plummeting by more than 96%, with losses estimated 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 connected to Milei’s inner circle.
Argentina freezes $507K in the $Libra Meme Coin case linked to President @JMilei, suspecting indirect payments to officials. #Libra #Argentina #memecoin
.https://t.co/T7aFM5svOP— Cryptonews.com (@cryptonews) November 11, 2025
Argentina freezes $507K in the $Libra Meme Coin case linked to President @JMilei, suspecting indirect payments to officials. #Libra #Argentina #memecoinProsecutors traced transactions and claimed that intermediaries converted crypto into fiat for Davis and Argentine lobbyists Mauricio Novelli and Manuel Terrones Godoy, with a significant transfer of $507,500 taking place just 42 minutes after Milei shared a selfie with Davis.
In April 2025, Argentina’s lower house voted 128-93 to initiate a congressional investigation summoning Economy Minister Luis Caputo, Justice Minister Mariano Cúneo Libarona, and National Securities Commission head Roberto Silva to scrutinize any potential misconduct related to the token’s promotion and subsequent collapse.
Despite the political turmoil that caused Milei’s approval rating to drop from 47.3% to 41.6%, his pro-crypto party, La Libertad Avanza, achieved an unexpected victory in Argentina’s midterm elections, capturing 40.68% of the national vote.
Wider Strategic Shift Amid Regulatory Ambiguity
The cessation of peso trading occurs as Argentina’s central bank is reportedly contemplating regulations that would permit traditional banks to provide crypto trading and custody services, potentially approved around April 2026, according to local exchanges.
While Coinbase is retracting from the country, it is expanding in other nations and sectors.
Earlier this month, Coinbase CEO Brian Armstrong announced an “everything exchange” strategy for 2026, integrating crypto, equities, prediction markets, and commodities worldwide while collaborating with the federally regulated platform Kalshi for event-based markets.
Coinbase’s choice to continue crypto trading while withdrawing from peso operations implies the exchange may be repositioning for regulatory changes rather than fully exiting the Argentine market.
However, some users and members of the community have criticized this move, with the lead DevRel at Talent Protocol calling it “wild.”
Coinbase removing the option to buy USDC for Argentinians is wild.
One of the highest crypto adoption countries is now blocked from accessing the onchain global economy.
Makes zero sense @coinbase pic.twitter.com/kE1cUmse9Y— Juampi.eth (@HooCrypto) December 31, 2025
“One of the highest crypto adoption countries is now blocked from accessing the onchain global economy. Makes zero sense,” he remarked.
The post Coinbase Exits Argentina: Peso-to-USDC Trading Ends January 2026 appeared first on Cryptonews.
