CEO Gabriel Jimenez notified platform users that Rpay will indefinitely suspend deposits and withdrawals in the national currencies of six Latin American countries in 30 days, August 3.
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“Deposits and withdrawals in Argentine pesos, Colombian pesos, Peruvian soles, Venezuelan bolivares and U.S. dollars at Ecuadorian and Panamanian banks will only be available until 12:00 p.m. five-day time on August 3. After that date, deposits and withdrawals will be limited to stable coins (eUSD, USDC, USDT and DAI), cryptocurrencies (BTC and ETH) and Mexican pesos, which will only be available to users in Mexico,” the notice states.
The head of Rpay said the move to cryptocurrency and away from fiat is due to cryptocurrency banking issues.
“Cryptocurrency companies relying on banking partnerships face significant challenges, especially after the FTX incident. Banks are inclined to close accounts and deprive cryptocurrencies of operations because of fears of regulatory scrutiny. The model we use is based on independent liquidity providers acting as transaction intermediaries,” the CEO explained.
The protracted investigation into the
corruption scandal surrounding oil state company Petroleos de Venezuela and Venezuela’s ban on domestic cryptocurrency mining have caused a massive shutdown of mining companies due to an acute liquidity crisis. The investigation continues for the third month, with a possible date for the state to lift the ban on cryptocurrency mining remaining undetermined.