Coinbase Exits Argentina Despite It Surpassing Brazil In Crypto Adoption

• Coinbase will suspend operations in Argentina, terminating ARS-to-USDC trading effective January 31, a year after it entered the Argentine market.
• Argentina has the highest crypto ownership rate in Latin America at 19.8%, according to Rankings Latam.
• After Argentina's 2024 VASP law placed crypto companies under FATF-compliant CNV control, regulatory changes continued.

Coinbase has paused operations in Argentina less than a year after entering the market, even as crypto adoption has been steadily rising in the country.

Coinbase said the decision followed an internal review of its performance in Argentina. In an announcement sent to customers, the exchange said that starting January 31, as per Forbes Argentina. The purchase and sale of the stablecoin USD Coin (USDC) using Argentine pesos will no longer be supported on the platform.

Coinbase Global Inc. (COIN) closed at $236.53 on Friday, up about 4.6% on the day. In after-hours trading on Sunday, Coinbase shares were up 0.57%, at $237.88. On Stocktwits, retail sentiment around Coinbase remained in ‘bearish’ territory over the past day, with chatter levels at ‘normal’.

Argentina Overtakes Brazil In Adoption

According to research by Rankings Latam, Argentina leads Latin America in crypto ownership, with 19.8% of its population holding digital assets, surpassing Brazil at 18.6%. The research also found that more than 85% of crypto holders in the region are concentrated in six countries, including Argentina and Brazil.

Rankings Latam linked the high level of crypto ownership in Argentina and neighboring countries to economic instability and limited access to traditional financial services. Rankings Latam also noted that these conditions have accelerated the use of cryptocurrencies across the region.

Argentina’s Crypto Laws

Law 27,739 marked a major shift in Argentina's crypto regulation. Passed in March 2024, the law formally introduced a framework for virtual asset service providers (VASPs) and gave the National Securities Commission (CNV) authority to supervise crypto companies operating in the country.

The law defines virtual assets as digital representations of value that can be traded or transferred electronically, while excluding official government-issued currencies. The framework aligns Argentina’s crypto oversight with international standards set by the Financial Action Task Force (FATF), reflecting efforts to strengthen anti-money laundering controls and avoid regulatory friction with global partners.

​Read also: Trump-Linked Crypto Stocks Edge Higher Amid Geopolitical Crisis
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