Coinbase will suspend buying and selling of USDC using Argentine pesos (ARS) from January 31, with ARS-based on-ramps and off-ramps no longer accessible to local users. Trading and custody of digital assets will continue to operate as before. The company described the move as a measured, temporary pause rather than a full withdrawal from the Argentine market, stating that it seeks a more sustainable product approach.
Local users were informed that they must settle ARS-based trades and withdraw funds by month’s end. While the exchange will discontinue ARS-based fiat on/off ramps, it will keep existing cryptocurrency trading, transfer, reception, and custody services intact. Industry observers cite Argentina’s complex financial regulations and high compliance costs as key drivers behind the scaling back.
Coinbase has indicated it will continue to work with local partners through the Ethereum Layer 2 network Base, even as some operations scale back. The decision comes amid indications that the Argentine central bank (BCRA) is considering allowing banks to support cryptocurrency transactions, a development seen as a potential catalyst for future crypto activity in the country. Analysts emphasize that the move reflects regulatory and cost pressures rather than a fundamental shift in cryptocurrency demand.
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