Coinbase has paused its local fiat operations in Argentina less than a year after formally entering the market, scaling back peso-based services while continuing to offer full crypto trading access. The decision marks a notable shift in the company’s Argentina strategy and highlights the challenges global crypto exchanges face when integrating with local financial systems in volatile economies.
Fiat rails put on hold after internal review
According to a report by Forbes Argentina, Coinbase informed users that it is temporarily stepping away from maintaining local fiat services following an internal review of its operations. The company described the move as a deliberate pause rather than a withdrawal, stating that it aims to reassess its approach and return with a more sustainable product offering tailored to local conditions.
The suspension mainly affects peso-linked services. From Jan. 31, 2026, users will no longer be able to buy or sell USD Coin using Argentine pesos or withdraw funds directly to local bank accounts. Coinbase has given customers a 30-day window to complete peso-based USDC transactions and withdraw any remaining balances before the cutoff date.
Crypto trading remains fully active
While fiat on- and off-ramps are being paused, Coinbase emphasized that its core crypto services remain unchanged. Users in Argentina can continue to buy, sell, send and receive digital assets, and the company said customer funds are not affected by the decision.
Coinbase pauses fiat rails in Argentina. Source: Ana Gabriela Ojeda
Coinbase also stressed that the move does not signal a permanent exit from Argentina. Instead, it framed the pause as part of a longer-term strategy to refine how it operates in the country, particularly when it comes to handling local currency flows.
Industry voices point to structural hurdles
Commenting on the development, Ana Gabriela Ojeda, a prominent figure in Latin America’s Web3 ecosystem, said such decisions often stem from the complexity of running local fiat operations. In a post on X, she pointed to unclear regulation, dependence on correspondent banks, high compliance costs and relatively low transaction volumes as common pressure points.
She noted that the pause should not be seen as a rejection of crypto or stablecoins. Rather, it reflects the structural difficulties of connecting global crypto platforms with domestic financial systems in markets marked by currency volatility and shifting rules.
Base network and local partnerships to continue
Despite the rollback of fiat services, Coinbase plans to maintain a presence in Argentina through Base, its Ethereum layer-2 network. Forbes Argentina reported that the company will continue collaborating with local partners, including crypto exchange Ripio, on initiatives linked to Base and broader onchain development.
Coinbase announced its Argentina launch in early 2025 after spending much of the previous year preparing its entry into the market. The country has long been seen as a key market for crypto adoption, driven by high inflation, capital controls and strong retail interest in digital assets.
At the time of publication, Coinbase had not responded to requests for additional comment.
Argentina considers new stance on bank crypto activity
The pause comes as Argentina’s regulatory landscape may be shifting. The country’s central bank is reportedly considering allowing traditional banks to trade cryptocurrencies. The Banco Central de la República Argentina is said to be drafting new rules that could permit banks to engage directly with digital assets, although details and timelines remain uncertain.
If implemented, the change would mark a significant departure from the central bank’s 2022 stance, when it barred financial institutions from offering crypto trading services after several major banks explored digital asset products. Regulators at the time cited potential risks to users and the stability of the financial system.
Whether upcoming regulatory changes will make Argentina a more workable market for global exchanges like Coinbase remains to be seen. For now, the company’s decision underscores the gap that often exists between strong crypto demand and the practical realities of operating local fiat infrastructure.
