Paxful, a Peer-to-Peer (P2P) exchange, has communicated today to its users based in Venezuela that no type of operations related to Petro, the Venezuelan state digital currency, are allowed within its portal.
In the statement, the exchange located in the United States mentioned that the company’s compliance team is monitoring the operations of the users to ensure that no funds are received or sent between Paxful and any „exchange related to Petro“.
In the event that a user makes any such transaction, the statement warns that the account will be suspended and the possibility will remain open for Paxful’s team to report the transaction information to the appropriate authorities.
Cointelegraph spoke with Magdiela Rivas, Paxful’s manager for Latin America, to understand the scope of the measure. In this regard, she mentioned that as a „company registered in the United States we have to adhere to the regulations of this country, this includes the sanctions issued by the U.S. Treasury Department in which any institution or project of the Venezuelan state is located, this includes Petro and the exchanges that support it.
In conclusion, Rivas mentioned that Paxful continues to offer services to Venezuelan users and accepts different payment methods that do not represent a violation of the regulations that apply to the P2P portal.
This would not be the first time that Paxful has had to take restrictions in the Venezuelan market in order to comply with the regulations. As we previously reported in Cointelegraph, in June the P2P portal informed its users that they would not allow any more transactions involving Banco de Venezuela and this due to the fact that this banking entity is sanctioned by the Office of Foreign Assets Control (OFAC) of the United States.
Venezuela: Traders claim that liquidating purchases at Petros would put the sector at risk of bankruptcy
Reaction to the Chainalysis report?
This new measure comes after Chainalysis, a forensic investigation company in the Bitcoin Lifestyle, issued a report on Criptolago, an exchange based in Venezuela and authorized to operate with Petro.
The investigation noted that the exchange could be contributing directly to Petro’s use of the company to evade sanctions against Nicolas Maduro and his power group. The research company also pointed out that compliance officers should be updated to understand how „Venezuelan exchanges interact with the international cryptomoney ecosystem.
Despite the closeness of the dates, Paxful did not mention in its statement or in comments to Cointelegraph that there was any kind of relationship between the measure and the Chainalysis report.