Xapo service will stop serving users from Venezuela

Xapo crypto wallet and custodian service to stop serving Venezuelan customers due to digital banking transition.

Xapo management started sending emails to Venezuelan users last week, notifying them in advance of your decision to stop working in Venezuela. Customers from this country need to withdraw funds before 31 December 2020 of the year.

The notice states, that Xapo is making significant changes to its work, and is about to launch a regulated digital banking platform in the near future to expand its business. In connection with the transition to a new format of work, Xapo will no longer be able to serve clients from Venezuela.

Service executives did not mention US sanctions, which could be the reason for this decision. But it is quite possible, that the cryptocurrency wallet operator is forced to cease operations in Venezuela in order to comply with US banking laws.

Xapo pioneered the Venezuelan cryptocurrency market. IN 2016 year Xapo began to provide services for the purchase and sale of bitcoins for bolivars through trusted third parties, and a year later it became a popular service in Venezuela along with the LocalBitcoins P2P platform and the now defunct bitcoin exchange Surbitcoin.

A few months ago, P2P platform Paxful ended its partnership with Bank of Venezuela due to sanctions by the US Treasury's Office of Foreign Assets Control. (I DO IT) against this state. Paxful stated, what to offer your services to Venezuelans, being under the control of American regulators, became too risky. Payoneer last year, Transferwise и cell, providing payment services for clients of the American bank Wells Fargo, also stopped operations in Venezuela.

Recall, that in September the Venezuelan government blocked access to the American cryptocurrency exchange Coinbase. It is assumed, that the reason for the blocking may be the increased pressure of the American authorities on President Nicolas Maduro (Nicolas Maduro).