Peer-to-peer (P2P) crypto exchange Paxful is shutting down its operations in Venezuela, apparently, to comply with U.S. economic sanctions against the leftist government of disputed president Nicolas Maduro.
On Tuesday, a Paxful spokesperson told news.Bitcoin.com that the exchange will now start restricting new accounts and closing old ones, as part of the shutdown process.
“Current users will have 30 days to withdraw their funds without fees and will be notified directly via email on how to do so,” said the spokesperson, in a statement shared on email. “Venezuelan users who have completed address verification that confirms they are living abroad will be able to continue trading on Paxful.”
The North American exchange claims the decision “comes with great disappointment”, but had to insulate against potential punitive outcomes on its worldwide operations. It cited strict regulations from the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC). The spokesperson explained: