Bitfinex to Deny All Petro Transactions in its Platform

Mar 28, 2018 at 18:22

Hong Kong-based cryptocurrency exchange Bitfinex said that it will not support Venezuela’s Petro (PTR) cryptocurrency.

The world’s number four crypto exchange by 24-hour trade volume, noted that the decision came after the United States issued an executive order banning its citizens to purchase the oil-backed cryptocurrency last week.

“We see the PTR as having limited utility. In addition, it could be construed as an attempt to circumvent legitimate sanctions against the government of Venezuela,” Bitfinex expressed in a statement posted in its official blog.

The company added that the restriction will be applicable to all customers of the platform and not exclusive to U.S.-based clients.

“We have never had plans to include the PTR or similar tokens in the Bitfinex trading platform. In light of the U.S. sanctions and the other clear sanctions risks of dealing in these products, Bitfinex will not list or transact the PTR or other similar digital tokens. This restriction extends to all customers of the platform, including U.S. persons, and to all activities on Bitfinex, including deposits, financing, trading, and withdrawals,” the statement further read.

Last month, Venezuelan president, Nicolas Maduro claimed that the initial coin offering presale for the state-backed Petro cryptocurrency already received as much as 171,000 intents to contribute from individuals and private companies.

He noted then that 40.8 percent of contributors intend to complete the transaction with US Dollar, while another 6.5 percent will make their purchase with Euro. Meanwhile, 33.8 percent pledged through Bitcoin and another 18.4 percent used Ethereum.

Despite the claims, Venezuela has yet to publicly name any of the contributors and the government has yet to distribute any of the 100 million Petro tokens available in the presale.