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USDC in Argentina: withdrawing ARS and stablecoins

USDC в Аргентине: вывести ARS и стейблкоины

Legal Disclaimer

This article is for informational purposes only and does not constitute legal or financial advice. Before making any financial decisions, consult with a qualified professional (tax lawyer or accountant) specializing in Argentine legislation.

Urgent Actions: What You Need to Do Before August 26, 2024

TL;DR: Coinbase is discontinuing support for the Argentine Peso (ARS). By 11:59 PM ART on August 26, 2024, you must:

  1. Withdraw all ARS to your bank account.
  2. Transfer all USDC to an external wallet or another exchange.
    If no action is taken, your ARS funds will become unavailable for withdrawal, and recovering USDC may require contacting customer support.

According to the official Coinbase notice, starting August 27, 2024, the exchange will cease supporting operations with the Argentine Peso (ARS). This means that users in Argentina will no longer be able to buy, sell, or withdraw ARS. This move affects thousands of users in a country where, according to Chainalysis, crypto adoption levels are among the highest in the world.

This guide will help you safely withdraw your assets and continue working with cryptocurrency in Argentina.

Article updated as of August 15, 2024, 11:00 AM ART.

Action Plan: Checklist

Step 1: Withdraw Argentine Pesos (ARS) — Before 08/26/2024

  1. Initiate the withdrawal. In your Coinbase account, transfer the full ARS amount to your linked bank account in Argentina.
  2. Check the withdrawal status. In your Coinbase transaction history, the status may be "Pending," "Completed," or "Failed."
  3. Consider timelines and limits. Bank transfers can take 1–3 business days. For large amounts, contact your bank in advance to clarify limits on incoming transfers and potential documentation requirements.
  4. Prepare documents for the bank. The bank may request proof of the source of funds (in Spanish, origen de fondos). Have the following ready:
    • A Coinbase statement showing your transactions.
    • Your CUIL/CUIT.
    • Documents confirming the original source of the money (e.g., pay stub, invoice).

Step 2: Withdraw Stablecoins (USDC)

IMPORTANT: Critical Security Rules

  • Selecting the wrong network will lead to irreversible loss of funds. Ensure that the sending network (on Coinbase) and the receiving network (on the other exchange or wallet) match.
  • Always perform a test transaction. Before sending the main amount, transfer a minimum amount (1–5 USDC) to verify the address correctness and network compatibility.

  1. Choose a platform for the transfer:

    • Non-custodial wallet (for long-term storage): MetaMask, Trust Wallet.
    • Hardware wallet (maximum security): Ledger, Trezor.
    • Local or international exchange (to exchange for ARS):
      Ripio, Lemon Cash, Binance P2P, Bybit P2P.

  2. Select the network and copy the address:

    • Identify the network. Check which USDC networks are supported by the receiving platform. Local exchanges in Argentina most often use Polygon (MATIC) and Arbitrum, as they are cheaper. The Ethereum (ERC-20) network is the most reliable but also the most expensive (gas fees can range from $5 to $50).
    • Copy the address. On your chosen platform, generate and copy the address to receive USDC on the correct network.
    • Verify the contract address. Ensure you are working with official USDC. Contract addresses can be verified on the issuer's website: Circle USDC Contracts.
    • Check tags/memo. When transferring to a centralized exchange (e.g., Binance), you may need to provide a Memo or Destination Tag. Without it, funds may be lost.

  3. Complete the transfer from Coinbase:

    • In your Coinbase account, go to "Assets," select USDC, and click "Withdraw."
    • Paste the copied address, select the corresponding network, and send the test amount.
    • After successfully receiving the test transaction, send the main amount.

What to Do If ARS or USDC Are Already Blocked?

If you did not manage to withdraw your funds before August 27, your ARS will be unavailable for direct withdrawal.

  1. Contact Coinbase Support. Open a ticket through the official Coinbase Help Center.
  2. Prepare information. You will need:
    • Your account ID.
    • Screenshots of your ARS or USDC balance.
    • Hashes (IDs) of your latest transactions.
  3. Follow the instructions. Support will likely suggest converting the remaining ARS to USDC (at an internal rate) and withdrawing them to an external wallet. Be prepared for potential delays.

Alternatives for Converting USDC to ARS: P2P Platforms

Peer-to-peer (P2P) platforms, such as Binance P2P and Bybit P2P, allow you to exchange USDC directly for ARS with other users.

How to operate safely on P2P:

  1. Verify the counterparty: Choose sellers with a rating >99%, a high volume of trades (>500), and "Verified" status.
  2. Check names: Ensure the name on the counterparty's bank account matches their name on the exchange profile.
  3. Use escrow: The platform freezes the cryptocurrency until you confirm receipt of the money. This is your primary protection.
  4. Communicate only via the platform's chat: This is your evidence in case of a dispute.
  5. Do not confirm the trade until the money is credited: Check your bank app to confirm the funds have arrived. Do not trust screenshots.

Legal and Tax Aspects

Proof of Source of Funds (AML/KYC)

Keep all transaction records for potential proof of the source of funds for your bank or AFIP. This includes exchange statements, transaction hashes, screenshots of P2P trades, and invoices.

Tax Obligations in Argentina

Cryptocurrency operations may be subject to taxes. Consult with a specialist using the following questions:

  • "What tax obligations (such as Income Tax, locally known as 'Impuesto a las Ganancias', and Wealth Tax, locally known as 'Bienes Personales') arise when selling USDC for ARS via P2P?"
  • "How do I correctly declare income to AFIP if I work under the 'Monotributo' (simplified tax regime) or 'Responsable Inscripto' (general tax regime) scheme?"
  • "What documents do I need to prepare for my annual tax return?"

Useful resources: official AFIP website.

Quick Guide to Wallet Security

  • Seed Phrase: Write it down on paper or a metal plate and store it in a secure offline location. Never store your seed phrase digitally (in files, photos, or the cloud) and never enter it anywhere except when restoring your wallet.
  • Phishing: Before connecting your wallet to any website, ensure the domain is official. Scammers create clone websites.
  • Approvals: Regularly check and revoke unnecessary token spending permissions using tools like Revoke.cash.

Frequently Asked Questions (FAQ)

  1. What are the fees for withdrawing USDC?
    Fees depend on the chosen network. Ethereum (ERC-20) is the most expensive ($5–$50+), while Polygon and Arbitrum are significantly cheaper ($0.1–$1). Coinbase may also charge its own withdrawal fee.

  2. A P2P buyer claims they sent the money, but it’s not in my account. What should I do?
    Do not release the cryptocurrency. Calmly ask the buyer to provide an official bank receipt (transfer confirmation, in Spanish often called comprobante de transferencia) and wait. If the funds do not arrive, open a dispute (appeal) on the P2P platform.

  3. What should I do if my ARS withdrawal from Coinbase is delayed?
    Check the transaction status in Coinbase. If it is "Completed" but the money has not arrived within 3 business days, contact your bank with the transfer details (Transaction ID, date, amount).

Tags

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