The peso-to-USDC transaction will end in January 2026
Crypto journalist
Anas Hasan
Crypto journalist
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Coinbase announced on January 3, 2026 that it would end peso-to-USDC trading on its platform for Argentine users starting January 31, marking a systematic retreat from local currency operations a year after launching with regulatory approval.
The exchange emphasized that crypto-to-crypto transactions are fully resumed while giving customers a 30-day window to convert and withdraw their pesos.
“At Coinbase, we are continually evaluating the products we offer to ensure the most efficient experience possible for our community,” the company said in a message to users.
The announcement states that after January 31, USDC will no longer be able to be bought or sold for Argentine pesos.
But the ability to buy, sell, send and receive cryptocurrencies across various digital assets remains uninterrupted.
A rapid expansion is followed by a swift contraction
Coinbase began operations in Argentina on January 28, 2025 after receiving a license from the National Securities Commission (CNV) to operate as a virtual asset service provider.
The exchange appointed Matthias Alberti, a fintech expert with experience from companies such as Buenbit and Clara, to lead regional operations, with regulatory compliance and security as top priorities.
Argentina was seen as a compelling market opportunity due to economic challenges such as high inflation and currency volatility.
Coinbase's study specifically revealed that 87% of Argentines see cryptocurrency as a way to financial freedom, while 79% are open to receiving wages in digital assets.
This, according to the study, makes the country six times more likely to use crypto on a daily basis than any Latin American nation.
The exchange's optimistic market entry coincided with the expansion of crypto investment opportunities by approving U.S. exchange-traded funds in Argentina under the CNV license, ending a six-year ban under Law No. 27440, including Bitcoin and Ethereum spot ETFs under the CEDEAR program.
Political Scandal Changes Argentina's Crypto Landscape
Coinbase's exit follows a devastating political fallout from the Libra meme coin scandal in February 2025, when President Javier Milei endorsed the Solana-based token on social media.
The coin rose from fractions of a penny to $4.50 in the hours before plunging more than 96 percent, with losses estimated at $100 million to $251 million after what investigators described as a classic pump-and-dump scheme.
An Argentine federal court has frozen more than $507,000 as part of a fraud investigation linking American businessman Hayden Davis and two crypto operators to a Malay inner circle.
Prosecutors allege that by tracking transactions and intermediaries, Davis and Argentine lobbyists Mauricio Novelli and Manuel Terrones converted a key $507,500 transfer from crypto to fiat 42 minutes after Godey Milley posted the selfie.
Argentina's lower house voted 128-93 in April 2025 to launch a congressional investigation into possible wrongdoing surrounding the token's launch and collapse against Economy Minister Luis Caputo, Justice Minister Mariano Cuneo Liberona, and National Securities Commission chief Roberto Silva.
Despite political turmoil that saw Miley's approval rating drop from 47.3% to 41.6%, his pro-crypto party La Libertad Avanza scored a surprise victory in Argentina's midterm elections, winning 40.68% of the country's vote.
A broad strategy change in regulatory uncertainty
The peso trading freeze comes as Argentina's central bank weighs regulations that would allow traditional banks to offer crypto trading and escrow services, which were approved around April 2026.
While Coinbase is retreating from the country, it is growing in other countries and vertically.
Earlier this month, Coinbase CEO Brian Armstrong announced an “everything exchange” strategy for 2026, linking crypto, equities, prediction markets and commodities globally through the federally regulated platform Kalshi for event-based markets.
Coinbase's decision to maintain crypto trading while exiting peso operations suggests the exchange may be making room for regulatory changes rather than abandoning the Argentine market entirely.
However, some users and the community criticized the move, with leader Deverell on Talent Protocol calling the move “wild”.
“One of the top crypto adoption countries is now blocked from accessing the global economy onchain. It makes zero sense,” he said.
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