Airtm, a widely used cryptocurrency exchange and wallet in Latin America, has announced it will wind down cryptocurrency trading and custody services on its platform. The company stated that as of January 4, 2023, all cryptocurrency deposits and withdrawals would be paused due to changes in the service offerings of one of its providers.
Crypto Services Shut Down
With over 2 million customers in the region, Airtm is particularly popular among freelancers. However, the company posted a message on its platform stating it is retiring all crypto-based services. All remaining cryptocurrency funds in user accounts will be automatically converted to Airusd, Airtm's dollar-pegged native stablecoin, which it claims is audited by the Financial Crimes Enforcement Network (FinCEN). Some users reported seeing the conversion happen in their accounts but funds remained inaccessible as of Jan 6.
Trigger: Third-Party Service Provider Change
Local sources suggest the unnamed provider is Wyre, a crypto payments firm that recently announced it is “scaling back” and implemented new withdrawal limits amid conflicting reports that it was winding down operations. Airtm did not name Wyre directly but cited the provider's service change as the reason for its decision.
Banking Services Also Affected
As part of a set of preventive actions, Airtm also suspended direct deposits to European and U.S. banks until further notice. This move affects thousands of freelance customers who rely on this feature for receiving payments. The company has not specified whether these measures are temporary or if crypto trading and bank deposits will be reinstated in the future.
Airtm's History in Venezuela
Airtm has a significant history in Venezuela, where it facilitated the distribution of a $300 bond given by the now-defunct interim government to medical workers. This prompted the current government to attempt blocking access to Airtm's site. In 2018, the company also launched a fundraising campaign to airdrop $1 million to over 100,000 registered Venezuelans.
The future of Airtm's services remains unclear. Industry observers suggest the crypto service halt could signal a broader business pivot or a temporary compliance measure. CoinTelegraph Chinese will continue to follow the story.