Coinbase has just received the green light to expand its services in Argentina. This approval from the country’s regulators means they can now offer local payment methods and services in Argentine pesos.
Since 2019, Coinbase has been operating in Argentina. With the recent registration as a virtual asset service provider (VASP) from Argentina’s National Securities Commission (CNV), they’re ready to roll out new offerings.
Initially, Coinbase started with crypto-to-crypto trading back in April 2019. Now, they can operate legally within Argentina’s framework for virtual assets, which is a big step forward. They plan to gradually introduce more services in the coming months.
A spokesperson from Coinbase explained that while they didn’t have a license before, they weren’t acting illegally. They mentioned that certain features were limited, but now, with the license in hand, they can offer a wider range of products in pesos.
This news comes after Binance received similar VASP approval in Argentina last October, marking its status as an official crypto service provider. Alongside expanding their services, Coinbase also intends to launch educational initiatives aimed at boosting crypto literacy among Argentinians.
Fabio Plein, Coinbase's director for the Americas, stated that these initiatives will help equip Argentinians with the knowledge they need to navigate the crypto landscape. For many, cryptocurrency is not just an investment; it’s essential for regaining financial control.
Argentina faces significant economic challenges, with 53% of its population living in poverty—the highest rate in two decades, according to the Argentine Catholic University. There have even been discussions about adopting Bitcoin, similar to El Salvador, to help improve the economy.
Currently, around five million Argentinians out of a population of 46 million engage with cryptocurrency daily. Coinbase’s State of Crypto report for Q4 2024 revealed that 76% of adults in Argentina see crypto as a solution to financial issues like inflation and high transaction costs.
In a survey of 4,900 adults across Argentina, Kenya, Switzerland, and the Philippines, 87% of Argentinians believed that crypto and blockchain technology could lead to greater financial independence. An October 2024 report from Chainalysis indicated that Argentina surpassed Brazil as the top country in Latin America for crypto inflows, totaling $91 billion from July 2023 to June 2024.
Chainalysis also pointed out that Argentina's stablecoin market is one of the largest in the world when it comes to stablecoin transactions.