Coinbase suspends peso-based services amid Argentina exchange rate instability

U.S.-based cryptocurrency exchange Coinbase has announced significant changes in the Argentina market. The decision is primarily driven by the ongoing inflation and currency devaluation, which have intensified Argentina’s exchange rate instability. Starting from January 31, 2026, Coinbase will fully cease fiat deposit and withdrawal services based on the peso within Argentina.

Policy Changes Driven by Inflation and Argentina’s Exchange Rate Fluctuations

Argentina is one of Latin America’s most active cryptocurrency markets. Due to high inflation rates and strict capital controls, locals have increasingly turned to cryptocurrencies as a means of asset protection. In 2025, shortly after Coinbase received regulatory approval from the National Securities Commission (CNV), the company revealed that approximately 5 million Argentinians trade cryptocurrencies daily in the region. However, amid the rapidly changing exchange rate situation in Argentina, Coinbase has raised questions about the sustainability of its local fiat-based services.

Ceasing Peso Withdrawals, Cryptocurrency Trading Continues Normally

Specifically, Coinbase will suspend trading of USDC stablecoin denominated in pesos and the ability to withdraw pesos to local banks. After January 31, 2026, users will no longer be able to deposit or withdraw pesos via On-Ramp (fiat deposit) and withdrawal services. However, the company emphasized that this move does not constitute a complete withdrawal. Cryptocurrency-to-cryptocurrency trading will continue to operate normally, and withdrawals of crypto assets remain available.

Temporary Suspension and Plans for Re-entry with Enhanced Systems

Coinbase describes this decision as a “careful temporary pause,” with plans to reassess and return with more robust products. The fact that some services are being scaled back less than a year after market entry highlights the company’s strategic restructuring. Meanwhile, Coinbase plans to continue collaborating with local partners through the Base ecosystem. Notably, it is working with Argentina’s cryptocurrency exchange Ripio, whose recently launched wARS (Argentina peso stablecoin) is gaining attention as an alternative to mitigate Argentina’s exchange rate volatility.

The Central Bank of Argentina is also reportedly preparing to announce new regulations around April 2026 that will allow banks to offer cryptocurrency services. As Argentina’s exchange rate instability persists, regulatory shifts in cryptocurrency policy are expected to create new opportunities in the market.