Paxful is pulling out of Venezuelaâs peer-to-peer (P2P) bitcoin scene.
- âIncreasingly strictâ regulations hampered the P2P bitcoin exchangeâs ability to âprovide services to Venezuelans,â according to a video tweeted by Paxful Monday.
- A company spokeswoman confirmed the exit with CoinDesk. âConcerns regarding the regulatory landscape around Venezuela and Paxfulâs own risk toleranceâ prompted the exit, she said.
- New Venezuelan account creation will be disabled and existing users will have 30 days to withdraw, according to an exit plan shared with CoinDesk.
- The departure will deprive Venezuelaâs underground crypto scene of its second-largest P2P outlet. Venezuelaâs crypto traders heavily favor P2P crypto exchanges like Paxful and market leader LocalBitcoins over government-approved alternatives.
- It also denies Paxful an emerging market it courted for years as the future of bitcoin adoption. Venezuelaâs rampant inflation, unbanked population and high mobile phone usage have long appealed to company CEO Ray Youssef.
- But those attractions werenât enough to overcome the myriad difficulties of operating in an economy as sanctioned and scrutinized as Venezuelaâs.
- In addition to Venezuelaâs internal cryptocurrency regulator SUNACRIP, the countryâs international exchanges also face potential troubles from financial sanctions levied by the U.S.
- Paxful blamed U.S. sanctions when it shut off trades involving the Bank of Venezuela in June.
- It was not immediately clear whether the regulatory uncertainty cited by Paxful was internal or external, perhaps due to U.S. sanctions.
Read more: Chainalysis Report Shows Healthy Crypto Usage in Venezuela
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