The situation in Venezuela has taken a turn for the worse and the latest casualty is Wallbit, a crypto-enabled neobank. US sanctions have forced Wallbit to pull out of Venezuela, leaving Venezuelan users with fewer crypto options when it comes to financial services. This is a major blow for the crypto community in Venezuela, as Wallbit was one of the few financial services available to them. Despite this, Venezuelans living outside of the country will still have access to Wallbit services. In this article, we’ll explore how US sanctions have caused Wallbit to depart from Venezuela and what this means for Venezuelans.
Wallbit Pulls Out of Venezuela
Wallbit is a cryptocurrency-enabled neobank that has become popular in Venezuela due to its low fees and ease of use. However, the platform recently announced that it will no longer be providing services to Venezuelan users residing in Venezuela. According to a statement released by Wallbit’s CEO, “In light of recent sanctions imposed on Venezuela, we have decided to discontinue our services for all users living in the country.”
Venezuelan users who are living outside of Venezuela will still be able to use Wallbit; however, those who reside within Venezuela must transfer their funds as quickly as possible. This will be particularly difficult for Venezuelans who are freelancing and use Wallbit to collect their wages and convert them into crypto.
Overall, this news is concerning for Venezuelan citizens who rely on crypto platforms like Wallbit to make financial transactions. While other options exist, such as peer-to-peer exchanges, these are often more expensive and come with higher risk. It remains to be seen how the closure of Wallbit will affect the Venezuelan crypto market.
US Sanctions Leave Venezuelan Users with Fewer Crypto Options
The latest crypto platform to shut its services in Venezuela is Wallbit, a Brazilian neobank that offers cryptocurrency exchange services. Wallbit made an abrupt announcement that it was ceasing operations in the country after US sanctions against Venezuelans and state companies were announced in August 2019. In their announcement, they stated that “due to the increasing risk of sanctions related to Venezuelan operations, Wallbit will have to suspend operations in Venezuela”.
This decision comes after two other popular platforms also closed their services in the country due to similar concerns. Uphold declared that its main cause was related to “the increasing complexity of compliant with U.S. sanctions against Venezuela” which had been gradually imposed for the last two years. On the other hand, Paxful cited “concerns regarding the regulatory landscape around Venezuela and Paxful’s own risk tolerance” as the source of their decision.
Moreover, these are not the only platforms that decided to restrict their services in Venezuela, but there is a growing list of companies that have taken similar steps due to sanctions imposed by the US. Even though exchanges such as Binance and Huobi continue to operate in the country, Venezuelans are becoming increasingly limited in terms of their financial service options.
In conclusion, Venezuelan users have lost yet another financial service provider due to US sanctions on the country, leaving them with less access to digital assets and payment options. Therefore, while Venezuelan citizens can still make use of some crypto exchanges, it is clear that this situation has led to an overall reduction in available options when it comes to processing payments and exchanging digital assets.
The recent US sanctions against Venezuela have had a significant ripple effect, including forcing crypto neobank Wallbit to flee the country. This move has left Venezuelan citizens with fewer options when it comes to digital currencies and financial services. While the future of Wallbit in Venezuela remains uncertain, it is clear that US sanctions have had a significant impact on the country’s crypto scene. With other crypto-related businesses likely to follow suit, the country’s digital economy may well be in for a turbulent ride in the months ahead.