Coinbase, one of the world’s most popular cryptocurrency exchanges, has received a license from Argentine regulators to expand its operations in the country.
The Comisión Nacional de Valores (CNV) has formally approved Coinbase’s registration as a Virtual Asset Service Provider (VASP), allowing the exchange to use various additional services, including local payment options in Argentine pesos.
On January 28, 2023, an official blog entry was published to announce this development.
Coinbase was founded in Argentina in April 2019 and has operated in a limited capacity, focusing mostly on cryptocurrency conversions and transactions.
However, the recently received regulatory clearance has put the exchange in a position to operate within the legal framework for virtual assets and provide a broader range of services.
Days before the exchange of regulatory cases
In an official interview with Cointelegraph, a Coinbase spokeswoman addressed the company’s current status.
According to the spokeswoman, the company did not have a license before approval, but it was also not operating unlawfully.
Coinbase was unable to provide services to the same extent as it does now due to previous restrictions.
The representative added that with this new license, they will be able to expand their products to include sales in Argentine pesos.
The company’s new regulatory achievement is a sign of sector development, as well as a step forward for the entire cryptocurrency business in Argentina, especially after Binance was granted the same VASP certification in October 2022, establishing it as an official cryptocurrency service provider.
Financial education in the form of cryptocurrencies
Coinbase has stated that, in addition to its expansion goals, it intends to establish local educational activities aimed at increasing Bitcoin awareness among the Argentine populace.
According to Fabio Plein, Americas director of Coinbase, these efforts will empower Argentinians with the awareness and abilities needed to navigate the benefits and risks of the crypto ecosystem more effectively.
Plein also noted that for many Argentinians, cryptocurrencies represent more than just a means of investing; they represent a solution to their purchasing power and economic predicament.
Given that around 53% of the Argentine population lives in poverty, there is a high demand for low-cost, simply accessible financial solutions.
The current crisis and Argentina
Argentina has been experiencing economic difficulties in recent years. Statistics show that Argentina is now one of the world’s most depressed countries.
It has been experiencing an economic crisis for the past 20 years, resulting in high inflation and diminished purchasing power.
In these difficult economic times, cryptocurrencies offer a viable alternate means of securing one’s assets, which could supplement established bank processes.
Due to a variety of circumstances, the Amazonian Peso has lost the majority of its value over the years, prompting many people to turn to safe cryptocurrencies for wealth protection.
Coinbase’s overarching goal with its license and expanded operational capabilities is to not only address these difficulties but also to raise awareness about the intricacies and benefits of the cryptocurrency ecosystem.
The future of cryptocurrencies in Argentina
In May 2023, multiple reports suggested that Argentina would explore using a Bitcoin approach similar to El Salvador’s to boost its economy.
According to Coinbase, around five million Argentinians out of a total population of 46 million use cryptocurrencies daily.
Their “State of Crypto” survey for Q4 2024, published on January 21, indicated that 76% of adults in Argentina see cryptocurrencies as a potential solution to their financial problems, notably in terms of inflation and high transaction fees.
Furthermore, in a Coinbase study of 4,900 individuals from Argentina, Kenya, Switzerland, and the Philippines, 87% of Argentine respondents believed in the potential of blockchain technology and cryptocurrencies to attain greater financial freedom.
According to a Chainalysis report published in October 2024, Argentina surpassed Brazil as the largest Latin American country in terms of expected cryptocurrency inflows, receiving a total of $91 billion between July 2023 and June 2024.
In the future, the Coinbase company will be linked to the commodities-cross rate, allowing it to expand into the Argentine market while also establishing a digital economy in the country.
The educational activities will teach citizens a lot about cryptocurrencies in the long run, making them easier to learn and more beneficial to them.
Coinbase’s progress will be watched with interest as its efforts match the specific socioeconomic conditions of Argentina and positively impact broader cryptocurrency usage in the region.
Due to the volatile economic condition, the exchange’s services may be what many Argentinians rely on for financial security.
The post Coinbase secures regulatory approval for Argentina expansion appeared first on Invezz
