TLDR:
- Coinbase stops Argentine peso USDC trading on January 31 after launching operations in January 2025
- Users keep full crypto trading access while fiat on-ramp services face temporary suspension
- Base blockchain partnerships with Ripio and other local firms remain active despite the pause
- Regulatory complexity and banking infrastructure drive the pause rather than crypto demand issues
Coinbase notified users on December 31 that it would suspend Argentine peso to USDC conversion services starting January 31, 2026. The exchange launched its Argentina operations in January 2025 after months of preparation.
Users received emails confirming the 30-day window to complete final peso transactions. The company told Forbes this represents a deliberate pause to reassess its local approach.
Coinbase Argentina Operations Halt After Brief Run
The platform will block peso-based USDC purchases and sales from late January onward. Users retain full access to crypto-to-crypto trading across all digital assets.
Funds remain secure in custody with no account closures planned. The company stressed that Argentina stays strategically important for its global expansion plans.
Coinbase spokespeople confirmed to Forbes they intend to return with improved services. The pause affects only the fiat on-ramp connecting Argentine pesos to stablecoins.
Crypto transactions between different digital assets continue without interruption. The exchange spent much of 2024 preparing its Argentine market entry.
The company declined to provide specific timelines for resuming peso services. It will maintain its presence through Base, its proprietary blockchain platform.
Base recently signed partnerships with local firms including Ripio. The exchange emphasized its mission to expand economic freedom remains unchanged.
Local Fiat Integration Challenges Surface in Volatile Market
Argentina ranks among Latin America’s highest cryptocurrency adoption markets despite the setback. Persistent inflation and currency controls drive strong local demand for digital assets.
The country hosts an active technology community that embraced Coinbase’s arrival. Major global platforms still face scaling challenges when competing against established local exchanges.
Criptolawyer noted on social media that unclear regulatory frameworks often complicate fiat operations. High compliance costs and dependence on correspondent banks create obstacles.
Low relative transaction volumes can make local currency services unsustainable. The lawyer emphasized that technology works fine but fiat integration remains the bottleneck.
Latin America continues as a central region for Coinbase’s broader strategy.
The company maintains that economic freedom through blockchain adoption drives its core mission. Political climate and regulatory uncertainty affect fiat operations more than crypto technology itself.
Local financial system integration poses structural challenges in volatile emerging markets.
The move exposes difficulties in converting Argentina’s market potential into stable operations.
Coinbase joins other international platforms navigating complex local banking relationships. The pause highlights gaps between cryptocurrency demand and traditional finance infrastructure.
Argentine users now have until month-end to withdraw peso balances through the platform.
The post Coinbase Pulls Argentine Peso Operations Just Months After Launch appeared first on Blockonomi.
Source: https://blockonomi.com/coinbase-pulls-argentine-peso-operations-just-months-after-launch/
