Coinbase Severs Argentine Fiat Rails; ARS Trading Ends Jan 31
The exchange retreats from its 2025 expansion, cutting off the ARS-USDC bridge in one of LatAm’s highest-volume crypto markets.
Coinbase (COIN) is pulling the plug on its Argentine fiat gateway less than a year after its official market entry. In an email sent to local users on December 31, the exchange announced it will suspend all Argentine Peso (ARS) trading pairs effective January 31, 2026. The move forces users to offboard ARS balances immediately, effectively severing the direct banking bridge for one of Latin America’s most active crypto populations.
The Retreat
The suspension specifically targets the ARS-USDC rail, the primary on-ramp for Argentine users seeking shelter from triple-digit inflation. While the company described the maneuver as a “deliberate pause” to “reevaluate its local strategy,” the functional impact is immediate: Coinbase is downgrading from a fiat-connected exchange to a crypto-only wallet for Argentine residents.
“We are taking a deliberate pause to reassess and strengthen our approach… ensuring we can return with a more robust and sustainable product offering.”
Crypto-to-crypto trading, deposits, and withdrawals remain operational. However, the inability to settle in local currency removes Coinbase’s primary utility in a country where 5 million daily users rely on stablecoins as a transactional proxy for the US Dollar.
The Discrepancy
The reversal contradicts Coinbase’s aggressive 2025 expansion narrative. The firm officially launched in Argentina in January 2025, touting regulatory alignment with the National Securities Commission (CNV) and its new VASP registry. Twelve months later, that infrastructure is being dismantled.
This retreat signals potential friction with local banking partners or the escalating compliance costs of Argentina’s new VASP framework, which requires strict reporting standards for fiat-to-crypto gateways. By cutting the fiat rail, Coinbase likely sidesteps the most onerous capital control regulations while retaining its user base on-chain.
Market Reaction
COIN shares traded flat at $236, as the market digested the loss of fee revenue from a high-volume, albeit volatile, jurisdiction. For Argentine users, liquidity is already shifting to local competitors like Lemon and Buenbit, which maintain active peso ramps.
