Wallbit, a crypto-enabled neobank, announced it would stop serving users in Venezuela after its US banking partner requested it. The platform announced that this measure was a direct result of the economic sanctions the country is currently facing, and that Venezuelans outside the country would continue to be served.
Wallbit will cut service to Venezuelan users
Wallbit, a cryptocurrency-enabled neobank, which advertised itself as capable of opening bank accounts for its users in the US, announced that it will suspend service to users residing in Venezuela.
The platform issued a press release on February 24, clarifying that its banking partners were calling for the closure of all accounts opened by Venezuelan users residing in Venezuela, telling these users to withdraw their funds as quickly as possible, even when Wallbit did not indicate a date when these accounts would be terminated.
The company clarified that Venezuelan users living abroad could still use its services, but should contact the company’s support in this situation. The situation could affect Venezuelan self-employed workers who use the platform to collect their salaries abroad and convert them to cryptocurrencies.
Close another platform due to sanctions
Wallbit clarified that the reason for this abrupt decision is directly related to the sanctions that the US government is currently exercising against some Venezuelans and state companies in the country. In its press release, the company declared:
We would like to clarify that this account closure is caused by the sanctions that the United States government has against Venezuela, so we have a duty to disable the creation of new accounts, and not allow new deposits from accounts created by resident users. In Venezuela.
This is not the first financial platform to cut ties with Venezuelan users due to the risk of being hit by sanctions. In June, Uphold, a New York-based cryptocurrency exchange and investment platform, announced that it would also close the accounts of Venezuelan users due to the “increasing complexity of complying with US sanctions.”
Similarly, Paxful, a P2P cryptocurrency exchange, announced in 2020 that it would stop offering its services in the country. At the time, the platform cited “concerns regarding the regulatory landscape around Venezuela and Paxful’s own risk tolerance” as the main cause behind this decision.
What do you think of Wallbit and its departure from Venezuela? Tell us in the comment section below.
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