Coinbase has secured regulatory approval in Argentina, allowing it to expand its services and offer transactions in Argentine pesos. The approval marks a significant step for the crypto exchange, which has operated in the country since 2019.
Coinbase Gains VASP Registration in Argentina
On January 28, Coinbase announced that Argentina’s National Securities Commission (CNV) granted it a Virtual Asset Service Provider (VASP) registration. This authorization enables Coinbase to introduce new services, including local payment options in the Argentine peso.
Since its initial launch in April 2019, Coinbase has provided crypto-to-crypto trading in Argentina. Now, with regulatory approval, the exchange can legally operate under the country’s virtual asset framework and gradually roll out additional services.
A Coinbase spokesperson clarified that while the exchange previously lacked a formal license, it was not operating illegally. The new license allows Coinbase to expand its offerings in compliance with local laws.
Argentina’s Growing Crypto Adoption
Coinbase’s regulatory approval follows Binance’s similar VASP registration in Argentina last October. As part of its expansion, Coinbase also plans to launch educational initiatives to improve crypto literacy in the country.
Fabio Plein, Coinbase’s director for the Americas, emphasized the importance of crypto for many Argentinians. He noted that digital assets serve not just as an investment but as a financial necessity, helping individuals regain control over their economic future.
Argentina has been experiencing severe economic challenges, with 53% of its population living in poverty as of October 2024. The country has one of the highest inflation rates in the world, making stablecoins and cryptocurrencies increasingly popular as alternatives to the weakening peso.
Argentina’s Crypto Surge and Future Outlook
Coinbase’s State of Crypto report for Q4 2024 revealed that 76% of Argentine adults see crypto as a potential solution to financial difficulties, such as inflation and high transaction costs. In a survey of 4,900 adults across Argentina, Kenya, Switzerland, and the Philippines, 87% of Argentinians expressed belief in crypto’s role in achieving greater financial independence.
A Chainalysis report from October 2024 ranked Argentina as the top Latin American country for estimated crypto inflows, surpassing Brazil. Between July 2023 and June 2024, crypto inflows in Argentina reached $91 billion. The country also has one of the world’s largest stablecoin markets, with high transaction volumes reflecting its reliance on digital assets for financial stability.
