Due to regulations and penalties connected With the US Office for Foreign Wealth Control (OFAC), Paxful announced that it will no longer provide its services in Venezuela. According to a display September 14th.
In a statement sent to Cointelegraph Paxful CEO Ray Youssef commented on that They spent several months trying to find a way to keep their operations going in Venezuela, but “given the current risks, we had no choice but to make this difficult decision.”
Ray also told Cointelegraph How the termination of your company’s services in the South American country works:
“The introduction of our upcoming closure in Venezuela will begin with restricting the creation of new accounts in the country and closing existing accounts. Existing users have 30 days to withdraw their funds with no fees and will be notified of this directly by email. “
Current data The study published by Chainalysis showed that Ukraine led the Global Cryptocurrency Adoption Index in 2020, followed by Russia and Venezuela.
Chainalysis described Venezuela in its report as an “excellent example” of the forces driving the adoption of cryptocurrencies in emerging markets. Highlighting its use among ordinary Venezuelans as a means appease economic instability.
While several users expressed their sadness that the company was leaving Venezuela, others remain optimistic saying that the recent announcement “is sad news, but no one is going to stop this digital revolution”.
Right now, LocalBitcoins, another very popular P2P market in Latin America, is functioning normally in the country.
Cointelegraph contacted Binance representatives in Latin America who confirmed to us that they will continue their operations as usual for Venezuelan residents. The company too highlighted the growing number of Venezuelan users joining the P2P market:
“Venezuelans have the highest average trading frequency on the P2P platform. This may be related to the fact that cryptocurrencies are widely used in Venezuela as an alternative payment, transfer and hedging instrument against inflation.”