Sanctions Force Crypto Neobank Wallbit to Exit Venezuela
The recent statement by Wallbit, a crypto-enabled bank, revealed that its decision to cease serving in Venezuela was attributed to directives from the US banking partner. Further, it was also revealed that the initiative was driven by the imposed economic sanctions. However, Venezuelans residing outside the nation would still benefit from the services.
Wallbit to Cease Service Provision to Venezuelans
Wallbit is a cryptocurrency-enabled Neobank with the ability to open bank accounts for its United States users. Recently, it disclosed that it would cease service provisions to Venezuelan residents.
The February 24 press release showed that its banking partners advocated for the closure of all accounts opened by Venezuelan clients living in the sanctioned country. Despite Wallbit failing to reveal the date of account termination, the residents were told to withdraw their funds within the shortest time possible.
Further, the organization revealed that it was still possible for Venezuelan users residing abroad to utilize the services. However, they need to liaise with the organization’s support team. This closure might have a significant impact on freelance who utilize the platform to fetch their wages overseas and convert them to crypto.
Sanctions Lead to the Closure of Another Platform
Wallbit spelt out that the sudden decision was attributed to the sanctions currently being exerted by the United States government against some Venezuelan state organizations and nations in the nation.
The organization’s press release showed that the closing of accounts is directly linked to the US government’s sanctions on Venezuela. Therefore, it is crucial to disable opening new accounts and cancelling new deposits originating from accounts of clients living in Venezuela.
Previously, other financial platforms have been compelled to sever links with users in Venezuela owing to the risks associated with sanctions. For instance, Uphold and Paxful have been affected by the restriction.
US Sanctions Compel Paxful and Uphold Exit from Venezuela
Uphold is a New York-founded investment and cryptocurrency exchange platform, and in June, it announced the closure of Venezuela users’ accounts because of the complexities surrounding the United States sanctions.
In 2020, Paxful confirmed that it would discontinue service provision in the nation. The major reason behind this decision was concerns associated with the regulatory landscape and the organization’s willingness to endure risk amid volatility.
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