Coinbase exchange will cease trading pesos for USDC from January 31, 2026, just one year after receiving its VASP license in a market with 5 million cryptocurrency users.
Coinbase is scaling back its operations in Argentina , one of the most vibrant cryptocurrency markets in Latin America, announcing the suspension of peso-based services from January 31, 2026. According to Forbes Argentina , users will no longer be able to buy or sell USDC using Argentine pesos or withdraw funds to local bank accounts after this date, although cryptocurrency-to-cryptocurrency trading will continue as normal.
This decision comes just one year after Coinbase received its application to become a Virtual Asset Service Provider from the National Securities Commission of Argentina on January 28, 2025. At the time, the exchange positioned itself as a leading compliant entity in a market estimated to have 5 million daily cryptocurrency users. A Coinbase spokesperson explained to Bloomberg Line: “This is a deliberate pause to allow us to reassess and strengthen our approach, to return to a stronger and more sustainable product portfolio.”
Customers were informed they had 30 days to complete peso-based transactions before the halt, with the assurance that their funds would not be affected. However, Coinbase did not clarify the specific reasons behind this move, only emphasizing that Latin America “continues to be a central region” in its expansion plans.
The LIBRA scandal and the changing legal environment.
Coinbase's decision to withdraw comes after a turbulent year for Argentina's cryptocurrency industry. In February 2025, President Javier Milei publicly endorsed the Solana-based memecoin LIBRA, causing the Token to surge to a Capital of $4.5 billion before collapsing by more than 90% after associated wallets withdrew over $107 million. The incident triggered a congressional investigation, with a committee concluding in November that Milei had provided “essential cooperation” to the project, although the president denied any wrongdoing.
Coinbase did not specify the political environment as a factor, but the legal landscape is undergoing significant changes. According to recent reports, the central bank of Argentina is XEM revising existing regulations that prohibit banks from engaging in activities related to digital assets. These changes could take effect as early as April 2026, opening up new opportunities for the cryptocurrency industry in the country.
Coinbase's temporary suspension of peso services, amid market anticipation of a clearer legal framework, reflects the caution of major exchanges in the face of political and regulatory uncertainties. This move also raises questions about the competitiveness of international platforms in the Latin American market, where local factors strongly influence long-term business strategies.
