Crypto exchange Coinbase has received a green light from Argentina’s regulators to expand services in the country, where it has operated since 2019.
Argentina’s National Securities Commission (CNV) signed off on a virtual asset service provider (VASP) registration for Coinbase, allowing it to start offering several new services, including local payment methods in the Argentine peso, the exchange said in a Jan. 28 blog post.
Coinbase first introduced crypto-to-crypto conversions and trading in Argentina in April 2019. According to Coinbase, it can now operate within the country’s legal framework for virtual assets as it gradually rolls out more services over the coming months.
Source: Coinbase
A Coinbase spokesperson told Cointelegraph the exchange previously didn’t have a license but “wasn’t working illegally” through its operations in the country.
“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.
It comes as Binance received the same VASP approval in Argentina last October, becoming registered as an official crypto service provider in the country.
As part of its expansion in Argentina, Coinbase said it also has plans for local educational initiatives to help foster crypto literacy.
Fabio Plein, director for the Americas at Coinbase, said the “initiatives will equip Argentinians with the knowledge and confidence they need to navigate the opportunities and challenges of the crypto ecosystem.”
“For many Argentinians, crypto isn’t just an investment; it’s a necessity for regaining control over their financial futures,” he added.
Argentina has one of the highest rates of poverty in the world, with 53% of the country living in poverty — its highest rate in 20 years, the Argentine Catholic University said in October.
Source: Argentine Catholic University
Last May, reports suggested that Argentina might consider emulating El Salvador’s approach to Bitcoin to help its economy.
According to Coinbase, five million Argentinians out of a population of 46 million currently use crypto in some form every day.
Coinbase’s State of Crypto report for the fourth quarter of 2024, released on Jan. 21, found that 76% of adults in Argentina view crypto as a solution to some of their financial frustrations, such as inflation and high transaction costs.
Related: Country-wide Bitcoin adoption a mixed bag for national economies
In the same survey of 4,900 adults in Argentina, Kenya, Switzerland and the Philippines — 87% of adults in Argentina said they thought crypto and blockchain technology could help them achieve greater financial independence.
An October 2024 Chainalysis report revealed that Argentina overtook Brazil as the top Latin American country in terms of estimated crypto inflows by users, with inflows totaling $91 billion between July 2023 and June 2024.
According to Chainalysis, Argentina’s stablecoin market is also one of the largest in the world in terms of stablecoin transactions.
Magazine: You should ‘go and build’ your own AI agent: Jesse Pollak, X Hall of Flame