Coinbase Cuts Argentine Peso Ramps Less Than Year After Launch

Coinbase is effectively dismantling its fiat bridge in Argentina, notifying users that it will suspend all peso (ARS) deposits and withdrawals on January 31, 2026. The move comes less than twelve months after the exchange secured its VASP registration and formally entered the market in early 2025.

The January 31 Deadline

According to notifications sent to Argentine customers this week, the exchange will disable the ARS-USDC trading pair and sever links to local bank accounts at the end of the month. Users have a roughly 30-day window to convert their holdings or withdraw fiat before the rails go dark.

While crypto-to-crypto trading remains operational, the loss of direct fiat on-ramps effectively decapitates the platform’s utility for retail users relying on it for daily payments or savings. Argentina’s inflation rate, historically hovering near triple digits, has made stablecoins like USDC a de facto parallel currency for millions.

"One of the highest crypto adoption countries is now blocked from accessing the onchain global economy," noted community members reacting to the sudden shift.

"Deliberate Pause" or Retreat?

Coinbase described the suspension as a "deliberate pause" to reassess its strategy, rather than a permanent exit. However, the reversal is stark. In early 2025, the company touted its National Securities Commission (CNV) registration as a major milestone for Latin American expansion. Now, it is retreating to a crypto-only model similar to offshore entities, leaving local competitors like Ripio or Lemon Cash to absorb the fiat volume.

Legal observers suggest the friction likely stems from the operational costs of maintaining local banking partners in a volatile regulatory environment. Criptolawyer (Ana Gabriela Ojeda) noted on X that such decisions often reflect the "structural challenges of integrating local financial systems," citing high compliance costs and reliance on correspondent banks.

Market Reaction

Coinbase (COIN) stock appeared unaffected by the regional contraction, trading up 4.6% to $254.92 on Monday. The market likely views the move as a cost-cutting measure in a high-risk jurisdiction rather than a blow to revenue.

For the estimated five million Argentines who use crypto daily, the options are narrowing. Users who fail to withdraw pesos by the deadline may face significant delays or forced conversions, though Coinbase has stated funds remain safe.