Airtm, a well-known cryptocurrency exchange and wallet in Latam, is removing cryptocurrency trading on its platform and replacing all funds with native stablecoins.
Cryptocurrency trading is taking off
Airtm, a recognized exchange used by freelancers in Latam, has announced that it is ending its cryptocurrency trading and custody services. The company, which has more than 2 million customers in the region, announced in a message on its platform that they have discontinued the cryptocurrency-based services in their wallet and that customers will not be able to withdraw or withdraw their cryptocurrency funds from the exchange.
The process was initiated by the company due to the change of services offered by an unknown provider. Local sources cite this provider as Wyre, a cryptocurrency-based payments company that recently announced a new limit for withdrawals following conflicting reports that it had ‘downscaled’ and suspended the company’s operations.
In addition, the company stated that existing funds in crypto have been converted to Airusd, its local stablecoin pegged to the dollar, which is allegedly overseen by the Financial Crimes Enforcement Network (FinCEN). A number of users reported seeing clearing processes in their accounts, but their funds were still unavailable until January 6th.
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Bank deposit paused
As part of a series of “preventive actions” implemented by the company, changes are also being made to operations supported in European and US-based banks. Airtm reported that direct deposits to these banks have been suspended until further notice, affecting thousands of free customers who use this feature extensively.
However, the company did not specify whether these measures are discontinuous or will include crypto trading and bank deposits again in the future.
In the past, Airtm was very active in Venezuela as the main facilitator in the delivery of a $300 bond issued by the now defunct impermanent government to the country’s healthcare workers. This caused the current government to try to block access to Airtm’s site.
Also in 2018, the organization launched a fundraising campaign to give a $1 million airdrop that will benefit over 100,000 Venezuelans registered and identified on the platform.
Change from Wyre
Crypto payment company Wyre has reportedly shut down its operations. The news comes after the $1.5 billion deal to buy Bolt failed and co-founder Michael Dunworth stepped down from his mission at the company. On January 6, Wyre released an update for the community addressing speculation about the company.
In its update, Wyre also announced the changes regarding the withdrawal processes and stated that the amount that users can withdraw is now limited. The statement said:
“We are changing our withdrawal policy. While customers will continue to withdraw their funds, we currently terminate withdrawals with up to 90% of the funds in each customer account subject to current daily limits.” “This will best position us to serve our customers and shareholders and maximize value.”