Paxful has announced that it will no longer offer its services in Venezuela due to rules and sanctions associated with the US Foreign Assets Control (OFAC), according to a statement released on September 14th.

In a statement sent to Cointelegraph, Paxful’s CEO, Ray Yusuf, commented that they had been trying for months to find a way to maintain their business in Venezuela, but that “with today’s risks, we had no choice but to accept this very difficult task. The decision … . ”

Ray also told Cointelegraph how the company’s liquidation would work:

The upcoming closure roll out in Venezuela will begin with the limitation of new account creation in the country and the closing of existing accounts. Existing users will have 30 days to withdraw their money for free and will be notified via email on how they do so. ”

The latest data from Chainalysis showed that Ukraine topped the global cryptocurrency adoption index in 2020, followed by Russia and Venezuela.

In its report, Chainalysis described Venezuela as a “perfect example” of the forces driving the adoption of cryptocurrencies in developing countries, and highlights the use of ordinary Venezuelans as a way to reduce economic instability.

While many users have regretted leaving the company in Venezuela, others remain optimistic, saying the latest announcement is “unfortunate news, but nobody wants to stop this digital revolution.”

Currently, LocalBitcoins, another popular P2P marketplace in Latin America, usually operates in the country.

Cointelegraph contacted Binance representatives in Latin America, who confirmed that they would continue business as usual for Venezuelan citizens. The company also noted an increasing number of Venezuelan users joining the P2P market:

Venezuelans have the highest average trading frequency on the P2P platform. This may be due to the fact that cryptocurrencies are widely used as an alternative tool for payments, transfers and inflation hedges in Venezuela. “

Source: CoinTelegraph

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