Airtm, a popular cryptocurrency exchange and wallet on Latam, is removing cryptocurrency trading on its platform and replacing all funds with native stablecoins. As Kriptokoin.com, we share the latest status of the cryptocurrency exchange.
Cryptocurrency trading is taking off
Airtm, a popular exchange used by freelancers on 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 it has discontinued cryptocurrency-based services in its wallet and that customers will not be able to withdraw or withdraw their cryptocurrency funds from the exchange.
The action was initiated by the company due to the change of services offered by an unidentified provider. Local sources cite that the provider is Wyre, a cryptocurrency-based payments company that has recently announced a new limit for withdrawals after conflicting reports that it has ‘downscaled’ and that the company is suspending its operations.
In addition, the company also noted that existing funds in crypto have been converted into its dollar-pegged local stablecoin Airusd, which is allegedly overseen by the Financial Crimes Enforcement Network (FinCEN). Some users reported seeing swaps on their accounts, but their funds were still unavailable until January 6th.
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 reports that direct deposits to these banks are suspended until further notice, affecting thousands of freelancers who are using the feature extensively.
However, the company did not specify whether these measures are temporary 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 interim 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 Bolt acquisition deal failed and co-founder Michael Dunworth stepped down from his role at the company. On January 6, Wyre released an update for the community addressing speculation about the company.
In its update, Wyre also announced changes regarding withdrawals, stating that the amount 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 limit withdrawals to a maximum of 90% of the funds available in each customer account, subject to current daily limits.” “This will best position us to serve our customers and shareholders and maximize value.”