P2P Bitcoin Exchange Paxful Terminates its Services Owing to US Sanctions

Strict Regulations imposed by the US on Venezuela compels Bitcoin Exchange Paxful to terminate services to Venezuelans.

By · Sep 16, 2020 . 6min read

Paxful Venezuela latest news
Source : IStock

Paxful has sent a notice to its customers that it will no longer offer its services in Venezuela. Paxful is a peer to peer trading platform that enables its users to purchase and sell Bitcoin (BTC) using more than 300 payment methods worldwide. This platform is essential for new or amateur cryptocurrency investors to trade crypto quickly and safely. It offers the most straightforward user interface.

The company’s resolution to discontinue operation in the country, which influences the Latin American region in terms of crypto volumes, is in line with sanctions imposed by the United States on Venezuela. Paxful elaborates that its users in Venezuela have 30 days to withdraw their funds free of charges. Nevertheless, Venezuelan traders who have achieved address verification that confirms they are living overseas will resume trading on Paxful. 

Paxful Forbids its Services?

Paxful notified its consumers in June that it would no longer carry transactions made through the Bank of Venezuela. It declared that any consumers making trades through the state-owned lender would see their accounts deactivated. The company elucidates that the move is in response to the need to comply with directives issued by the US Treasury Department’s Office of Foreign Assets Control. However, it will not prohibit trading for the citizens. Thus, those using Paxful in the country must confirm their identities to prove that sanctions do not target them.

Thus, Venezuelans appropriating other banks could still apply the platform after experiencing a rigorous KYC process. Aside from Paxful, P2P exchanges like LocalBitcoins, Binance, and KuCoin were among the few cryptocurrency exchanges serving users in hyperinflation-ridden Venezuela.

Moreover, Venezuelan authorities shut down many cryptocurrency exchanges over the last two years. They ordered them to prohibit operations as part of a crackdown against the developing bolivar-to-bitcoin market. Paxful’s move comes a few days after the Venezuelan government blocked user access to US exchange Coinbase and MercaDolar, a fiat remittance platform. Further, Venezuela Inteligente revealed that internet service providers (ISPs) in Venezuela had declined access to crypto exchanges. The latter include Coinbase and MercaDolar. However, The decision made was under the instruction of President Nicolas Maduro’s government. 

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