Xapo, a Hong Kong-based cryptocurrency custodian, has reportedly ceased all operations in Venezuela. According to several reports on Twitter, the Coinbase-backed crypto custodian is not only blocking all transactions related to Venezuela, but also closes related accounts.
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In an email statement, Xapo says it will no longer service Venezuela as the company soon will be launching a regulated digital banking platform.
Earlier, Xapo announced expansion of its services to create a new digital banking that will enable the platform's users to manage their funds across all facets of their financial lives.
However, the company did not notify its users that during the process of reorganization some of them might face problems with access due to sanction regime.
At press time, Xapo has not made any official announcement on the matter.
Meanwhile, the crypto custodian is not the only one on the market that had to cease its services due to political issues. In June, popular peer-to-peer bitcoin (EXANTE: Bitcoin) marketplace Paxful also restricted access to its services for clients from Venezuela.
The company admitted that the limitations are related to sanctions imposed by the United States on Venezuela.
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