Bitcoin miner Bitfarms also stopped operations in Argentina due to a power outage affecting its facility
Less than a year after launching in Argentina, crypto exchange Coinbase has paused its local fiat operations, suspending peso-based services while continuing to support cryptocurrency trading.
Before implementing this move, it had alerted its users of this intention in a statement published on December 31, 2025. Notably, the firm adopted this decision the same year it received approval to begin its operations in the country.
This sudden decision prompted reporters to contact the firm’s representatives for comment. The spokespersons claimed that they had embraced this move after conducting a review of their performance in the local markets.
They added that, “This is a thoughtful pause that allows us to rethink and improve our strategy so we can come back with a stronger and more sustainable product.”
In Argentina, Coinbase focused on key aspects of its regional plans in 2024, developing strategies to enter the market effectively. In January 2025, the company officially announced the launch of its local operations.
Following the current situation, several individuals raised concerns about Coinbase’s sudden decision, with the main question raised in the ecosystem being, “What does this current pause mean?”
In an attempt to answer this question, Coinbase released a statement intended for its users in Argentina. The statement noted that users in the country will no longer be able to access the exchange to purchase or sell the stablecoin USDC using Argentine pesos, the local currency, beginning January 31, 2026. However, it did not disclose the reason behind this decision.
Another thing that the exchange unveiled was that cryptocurrency transactions, such as sending and receiving, will still be accessible to users. To silence the controversy raised in the ecosystem, Coinbase informed the press that it still values Argentina as a crucial market for new ideas. Following this claim, the firm made it clear its intentions to revive its operations in the nation in the future with an enhanced user experience.
The Coinbase team asserted that they seek to achieve their firm’s goal of improving economic freedom by linking the world through blockchain technology. With this goal in mind, Latin America remains a key area of focus.
As discussions continued among individuals, several analysts weighed in on the situation. They pointed out that although Coinbase adopted this move, the decision comes at a time when Argentina has solidified its position as a hub for cryptocurrencies. To support this claim, reports indicate that both local and global firms have recently shown a heightened interest in the Argentine market.
For instance, Ripio launched the local peso-pegged stablecoin. Nexo, on the other hand, acquired the Buenbit exchange as part of its long-standing aim to expand.
Apart from Coinbase, reports revealed that Bitfarms, a popular Bitcoin mining firm, also halted its Bitcoin mining operations in Argentina, based in Rio Cuarto. The company alleged that the reason behind this decision was an unexpected power outage from its local energy supplier.
This information was published in Bitfarms’ earnings report for the first quarter. In this report, the firm noted that the power supply interruption began on May 12. It resulted from Generación Mediterránea S.A. (GMSA), the company responsible for providing this electricity supply to Bitfarms in Argentina.
The outage occurred shortly after GMSA notified Bitfarms regarding matters related to a financial reorganization process with creditors. At this particular moment, sources highlighted that the team initially vowed to continue offering power supply to the mining company.
Meanwhile, Bitfarms argued that this interruption has caused growing uncertainties concerning when or if power will be restored. Due to these uncertainties, the firm began exploring various alternatives to support operations at the facility.
It is worth noting that Bitfarms’ operations in Argentina generated approximately $6.9 million in revenue during the first quarter of 2025. This figure contributed approximately 10% of the firm’s total revenue, which amounted to $66.8 million during this period.
In their report, Bitfarms stated that this outage incident left them with no other choice but to halt their cryptocurrency mining operations based in Argentina. After making this claim, the company warned that this situation could significantly impact their operations if not resolved.
