Coinbase is halting its services in Argentina effective January 31, 2025, less than a year after launching there. The move comes as the country leads Latin America in cryptocurrency ownership at 19.8 percent. Regulatory changes and economic factors are cited as key influences.
Coinbase announced it will suspend operations in Argentina, terminating trading between Argentine pesos and the stablecoin USD Coin (USDC) starting January 31, 2025. The decision follows an internal review of the company's performance in the market, which it entered about a year earlier. Users will no longer be able to purchase or sell USDC using pesos on the platform, though existing balances can still be managed until the deadline.
Argentina has emerged as a cryptocurrency hotspot in Latin America, with 19.8 percent of its population holding digital assets, according to research by Rankings Latam. This rate surpasses Brazil's 18.6 percent and is attributed to economic instability, hyperinflation, and strict capital controls that limit access to traditional financial services and US dollars. More than 85 percent of regional crypto holders are concentrated in six countries, including Argentina and Brazil.
The regulatory landscape has evolved significantly. In March 2024, Law 27,739 established a framework for virtual asset service providers (VASPs), placing crypto firms under the oversight of the National Securities Commission (CNV). This law aligns Argentina's rules with Financial Action Task Force (FATF) standards to enhance anti-money laundering measures and reduce global regulatory friction. The CNV has since imposed stricter oversight, compounded by the Central Bank's foreign exchange controls, making operations challenging for international exchanges like Coinbase.
Local alternatives remain available for Argentine users. Platforms such as Buenbit, Lemon Cash, and Ripio continue to offer peso-to-crypto conversions via bank transfers and cash deposits. These exchanges could fill the gap left by Coinbase, especially amid ongoing economic pressures. The election of pro-crypto President Javier Milei may signal potential shifts in the regulatory environment, possibly encouraging international players to return.
This exit highlights broader tensions in Latin America's crypto scene, where countries like Brazil and El Salvador have developed more comprehensive regulations, while economic woes drive adoption.
