Crypto exchange Coinbase has received official approval from Argentina’s National Securities Commission (CNV) to expand its services in the country, marking a significant milestone in its operations. The Virtual Asset Service Provider (VASP) registration allows Coinbase to introduce new financial services, including support for local payment methods in Argentine pesos, the company announced in a blog post on January 28.
Coinbase has operated in Argentina since 2019, initially offering crypto-to-crypto conversions and trading. However, without a formal license, its services were limited. With the newly granted VASP registration, Coinbase can now operate fully within the country’s legal framework and expand its range of crypto-related offerings in the coming months.
A Coinbase spokesperson told Cointelegraph that although the company had been operating legally before, it lacked a formal license to offer peso-based financial services. “Coinbase couldn’t operate the way it will now. Previously, certain functionalities were offered within the legal framework, but now, with the license, it’ll be able to offer more products in pesos,” the spokesperson said.
Argentina has witnessed a rapid rise in cryptocurrency adoption, largely driven by economic instability, high inflation, and a devaluing peso. Reports suggest that nearly five million Argentinians—out of the country’s 46 million population—use crypto daily. A Coinbase survey released on January 21 revealed that 76% of adults in Argentina view cryptocurrency as a solution to financial issues like inflation and high transaction fees.
Furthermore, an October 2024 Chainalysis report found that Argentina had overtaken Brazil as the top Latin American country for estimated crypto inflows, with transactions totaling $91 billion between July 2023 and June 2024. The country’s stablecoin market is also among the largest globally in terms of transaction volume.
As part of its expansion strategy, Coinbase plans to launch educational initiatives to improve crypto literacy among Argentinians. Fabio Plein, Coinbase’s director for the Americas, emphasized that the initiative aims to equip locals with the necessary knowledge and confidence to navigate the digital asset ecosystem.
“For many Argentinians, crypto isn’t just an investment; it’s a necessity for regaining control over their financial futures,” Plein said.
Coinbase’s approval follows a similar move by Binance, which received its VASP registration in Argentina in October 2024, allowing it to offer expanded crypto services legally.
As Argentina continues to embrace cryptocurrency amid economic challenges and high poverty rates (53% as of October 2024), Coinbase’s expansion could further drive crypto adoption and financial empowerment across the country.