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Wallbit, a crypto-enabled neobank, announced that it would stop serving users in Venezuela after its banking partner in the United States asked it to do so. The platform announced that this move was a direct result of the economic sanctions that the country is currently facing and that Venezuelans outside the country will continue to be served.
Wallbit, a cryptocurrency-enabled neobank, which advertised itself as being able to open bank accounts for its users in the United States, announced that it will stop service to users residing in Venezuela.
The platform issued a press release on February 24, clarifying that its bankers requested the closure of all accounts opened by Venezuelan users residing in Venezuela, and asked those users to withdraw their funds as soon as possible, although Wallbit did not indicate a date as these accounts would be terminated.
The company clarified that Venezuelan users living abroad will still be able to use its services, but that they should contact the company’s support in this situation. The situation could affect Venezuelan freelancers who use the platform to collect salaries abroad and convert them into crypto.
Wallbit clarified that the reason for this sudden decision is directly related to the sanctions that the United States government is currently exercising against some Venezuelan citizens and state-owned companies in the country. In its press release, the company writes: declared:
We would like to clarify that this account closure has its cause in the sanctions that the US government has against Venezuela, so we are obliged to disable the creation of new accounts, and not allow new deposits coming from accounts created by users residing 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 was also closing 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 reason behind this decision.
What do you think about Wallbit and the exit from Venezuela? Tell us in the comments section below.
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