Airtm Winds Down Cryptocurrency Trading, Exchanges All Funds to Native Stablecoin

Airtm, a Latam popular cryptocurrency exchange and wallet, has announced it is winding down cryptocurrency trading and custody in its platform. The company stated that starting Jan. 4, 2023, all cryptocurrency deposits and withdrawals would be paused due to the changes in the service offer of one of its providers.

Airtm, a popular exchange used by freelancers in Latam, has announced it is winding down cryptocurrency trading and custody services. The company, which has more than 2 million customers in the region, disclosed in a message on its platform that they were retiring cryptocurrency-based services in its wallet, leaving customers unable to deposit or withdraw their cryptocurrency funds out of the exchange.

The action was taken by the company supposedly due to the change of the services offered by an unidentified provider. Local sources state this provider is Wyre, a cryptocurrency-based payments firm, which has recently stated it is “scaling back” and announced a new limit for withdrawals after conflicting reports indicated the firm was winding down its operations.

In addition to this, the company further stated that available funds in crypto are being converted to Airusd, its dollar-pegged native stablecoin, claimed to be audited by the Financial Crimes Enforcement Network (FinCEN). Some users reported having seen the exchange operations in their accounts, but their funds were still unavailable by Jan. 6.

As part of a set of “preventive actions” exerted by the company, it is also making changes to the supported operations in European and U.S.-based banks. Airtm informed that direct deposits to these banks were suspended until further notice, affecting thousands of freelance customers that commonly make use of this feature.

However, the company did not indicate whether these measures were temporary or if it will include cryptocurrency trading and bank deposits again in the future.

In the past, Airtm was very active in Venezuela, having been the main facilitator for the delivery of a $300 bond given by the now-defunct interim government to the medical workers of the country. This prompted the current government to try to block access to Airtm’s site.

Also, in 2018, the organization launched a fundraising campaign to give an airdrop of $1 million that would benefit more than 100,000 Venezuelans registered and identified on the platform.

What do you think about Airtm dropping cryptocurrency trading and restricting bank operations? Tell us in the comments section below.