- Coinbase halts peso services in Argentina while crypto trading remains fully active
- Fiat withdrawal freeze highlights regulatory and banking pressure on exchanges
- Base network strategy keeps Coinbase engaged despite local currency setback
Crypto exchange Coinbase has paused peso-based services in Argentina, narrowing local access less than a year after market entry, while trimming fiat features and keeping crypto trading available nationwide. Users were informed that the adjustment follows an internal review of local operations and long-term viability, and Coinbase described the move as temporary with plans to return using a more sustainable model.
Notably, the change affects only peso-linked rails tied to buying, selling, and withdrawals, and from Jan. 31, 2026, users will no longer trade USDC USDC$1 using ARS or withdraw funds to local banks. The company granted a 30-day window to complete peso-based USDC transactions and withdrawals, while crypto-to-crypto activity continues without interruption across the platform.
Users still buy, sell, send, and receive digital assets as usual, and Coinbase confirmed that customer funds remain secure and unaffected by the decision. The company also stressed that the pause does not represent a permanent withdrawal from Argentina, as industry observers link such pauses to operational pressure within local financial systems.
Also Read: Torres Targets Prediction Markets After Venezuela Bet Raises Insider Trading Concerns
Ana Gabriela Ojeda, a prominent Web3 voice in Latin America, pointed to regulatory ambiguity and banking dependencies as key challenges, explaining that compliance costs often rise faster than transaction volumes. Moreover, correspondent banking relationships can limit efficiency and increase operational risk, and Ojeda added that the move does not reflect declining confidence in crypto or stablecoins but highlights structural limits facing global platforms.
Base Network Keeps Coinbase Active Locally
Despite freezing peso services, Coinbase plans to remain engaged through its Base layer-2 network, with continued collaboration on Base-related initiatives.
One such partner includes Ripio, allowing Coinbase to maintain exposure to developers and users without managing direct fiat rails.
The company announced its Argentina launch in early 2025 after months of market preparation, and the pause reflects strategic recalibration rather than reduced regional interest.
Regulatory Shifts Shape the Operating Landscape
Meanwhile, Argentina’s regulatory environment remains unsettled as the Banco Central de la República Argentina weighs rules that may allow banks to trade cryptocurrencies. Draft proposals could permit direct bank involvement with digital assets, a move that would reverse a 2022 restriction on bank-led crypto trading.
At that time, regulators cited risks to users and broader financial stability, a concern that continues to influence policy discussions. This evolving backdrop adds uncertainty for exchanges managing local fiat infrastructure and long-term compliance.
Overall, the peso service freeze underscores operational caution amid regulatory transition and financial complexity. The development shows crypto demand persists even as fiat integration faces growing constraints.
Also Read: Bitcoin Defies Geopolitical Fears, Holds $90,000 After US Strike on Venezuela
