Coinbase is withdrawing from the Argentine market once again. Beginning January 31, 2026, the stablecoin USDC will no longer be available for trading in Argentine pesos and will cease local currency-based trading. This strategic retreat, just one year after entering the market, signals a reorientation of the company's rapidly expanding local business.
This measure was officially announced on January 3rd, when Coinbase officially notified Argentine users via email. The email explained that they were "continuously re-evaluating our products to provide the most efficient service to our users." However, cryptocurrency-to-cryptocurrency trading will continue to operate as before, and users will be able to convert their pesos to USDC or withdraw funds until the end of January.
Coinbase withdraws after a yearโฆ Despite market appeal, it remains stymied.
Coinbase officially entered the market as a virtual asset service provider on January 28th of last year, receiving approval from the Argentine National Monetary Authority (CNV). At the time, the industry was focusing on cryptocurrency as a promising market, with the cryptocurrency booming among Argentines seeking alternatives to the dollar amid high inflation and exchange rate instability.
According to our own survey, 87% of Argentines view cryptocurrency as a means of financial independence, and more than eight in ten are open to receiving their salary in cryptocurrency. Consequently, Argentina is rated as a country where cryptocurrency is used in daily life six times more frequently than other Latin American countries.
In line with market expectations, Coinbase aggressively expanded its presence by appointing Matthias Alberti, a local fintech veteran, as its regional head. CNV also lowered the barrier to cryptocurrency investment by allowing local indirect investment (CEDEAR) in US Bitcoin (BTC) and Ethereum (ETH) spot ETF products, a positive development.
Political scandals and market uncertainty overlap
Coinbase's seemingly smooth sailing operations in Argentina began to falter sharply in February 2025 following the Libra meme coin scandal. President Javier Millei promoted the Solana (SOL)-based meme coin on social media, sending its price soaring. However, it quickly plummeted by 96%, resulting in an estimated loss of $100 million to $280 million (approximately KRW 144.6 billion to KRW 405.4 billion).
The local court is investigating the possibility of a pump-and-dump scheme, freezing approximately $500,000 (approximately 723 million won) in assets belonging to individuals, including the perpetrator, American citizen Hayden Davis. The meme coin in question saw a massive movement of funds within 42 minutes of President Millais posting a selfie, and evidence has also emerged linking it to key members of the president's inner circle.
The incident led to congressional hearings and the summoning of the Minister of Economy and Finance and the Chairman of the Securities and Exchange Commission, sparking national unrest. Despite this, the president's pro-cryptocurrency party, the "Free World Progressives," secured a victory in the 2025 midterm elections with 40.68% of the vote, solidifying its political base.
Ahead of regulatory changes, a strategic reorientation shifts to "all exchanges."
Coinbase's recent withdrawal is being interpreted as a strategic shift closer to restructuring and restructuring, rather than a complete withdrawal. Indeed, around April of this year, local reports surfaced that the central bank was considering allowing traditional banks to provide virtual asset trading and custody services.
Coinbase, meanwhile, is strengthening its global expansion strategy. In early January, CEO Brian Armstrong announced his vision for an "everything exchange" that integrates cryptocurrencies, securities, prediction markets, and commodities. To achieve this, the company plans to enter the event-based trading market by partnering with Kalshi, a platform registered with US federal regulators.
In this context, the suspension of peso trading is interpreted as a preemptive measure to avoid regulatory risks while remaining flexible in responding to future changes. However, there's also been considerable public backlash. One blockchain developer criticized on social media, stating, "It makes no sense to block access to the global economy from the country with the largest cryptocurrency usage in the world."
๐ Market Interpretation
While Argentina remains a promising market with high cryptocurrency adoption, Coinbase is cautiously retreating to avoid the risks of local currency transactions and regulatory uncertainty. This is in line with its global diversification strategy.
๐ก Strategy Points
Coinbase: Shifting from a local currency to a cryptocurrency-focused strategy.
Argentina: Banks are preparing to legalize cryptocurrency transactions.
- Market growth potential remains, leaving room for future re-entry.
๐ Glossary
- CEDEAR: Indirect investment certificate for stocks and ETFs in Argentina
Pump and Dump: An investment fraud technique in which prices are artificially inflated, then withdrawn at a high point and then plummeted.
Custody: A third-party service that acts as an agent for the storage and protection of assets (especially cryptocurrencies).
๐ก Want to know more? AI-prepared questions for you:
A. Cryptocurrency trading will continue, but to address regulatory uncertainty and risks, we have suspended trading in the local currency, the Argentine peso. This is part of a strategic rebalancing and not a complete withdrawal from the market.
A. In a world of high inflation and declining currency values, many citizens are using cryptocurrencies as a financial tool. According to a Coinbase survey, 87% of respondents are positive about cryptocurrencies.
A. While there is no clear connection, the market and political instability triggered by the fraud incident appears to have influenced Coinbase's strategic moves.
A. While peso-cryptocurrency transactions are blocked, cryptocurrency-to-cryptocurrency transactions will remain possible. In the future, access to transactions through banks may be opened with central bank approval.
A. Yes. CEO Brian Armstrong has announced an "all-asset exchange" strategy and is expanding into a variety of trading products.
TP AI Precautions
This article was summarized using a TokenPost.ai-based language model. Key points in the text may be omitted or inaccurate.
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