USDC on/offline cryptocurrency trading will remain suspended.
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According to Forbes Argentina, Coinbase has decided to suspend its Argentine Peso (ARS)-based USDC on-ramp service, citing an internal review of its local operations. The company described the move as "a deliberate pause to return to a more sustainable service structure."
This change means that after the 31st, Argentine users will no longer be able to buy or sell USDC using pesos, and deposits and withdrawals to local bank accounts will also be restricted. Coinbase stated that users will be given approximately 30 days to settle their accounts before the deadline.
Cryptocurrency trading functions are operating normally.
Even if the fiat currency rail is suspended, cryptocurrency-to-cryptocurrency trading functionality will remain intact. Users can continue to buy, sell, and send and receive digital assets like Bitcoin (BTC) and Ethereum (ETH), and Coinbase emphasized that the safety of customer funds will not be affected.
The company also emphasized that this move does not mean a permanent withdrawal from the Argentine market. The company remains open to the possibility of resuming local services once regulatory and operating conditions improve.
Background: regulatory and banking infrastructure burdens
Ana Gabriela Ojeda, an influential analyst in the Latin American Web3 industry, wrote in her X post:
"The disruption of local fiat rail is not a problem with cryptocurrencies per se, but rather a result of a combination of regulatory uncertainty, reliance on correspondent banks, high compliance costs, and limited transaction volumes," he explained.
He added that this "exposes the structural limitations of integrating regional financial systems in volatile markets."
Maintain base-based local partnerships
Although its fiat currency offerings have been scaled back, Coinbase plans to continue its operations in Argentina, centered around the Ethereum Layer 2 network Base. Forbes Argentina reported that Coinbase will continue to expand the Base ecosystem in partnership with local cryptocurrency exchange Ripio and others.
Coinbase officially announced its entry into the Argentine market in early 2025, having spent the previous year obtaining relevant licenses and preparing for market entry.
Argentina's central bank is considering banks' participation in cryptocurrency.
Meanwhile, Argentina's Central Bank (Banco Central de la Repรบblica Argentina) is reportedly considering allowing traditional banks to directly participate in cryptocurrency trading. However, the timing and final scope of the relevant regulations have not yet been finalized.
Amidst these regulatory discussions, the suspension of fiat currency rails on global exchanges is seen as a case in point, highlighting the transitional state of the Argentine cryptocurrency market.
Reporter Jeong Ha-yeon yomwork8824@blockstreet.co.kr
