Paxful shuts down El Salvador operations amid bear market and potential legislative issues

Bear market and potential legislation causing headaches for Paxful in El Salvador

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The cryptocurrency exchange platform Paxful fired all its employees in El Salvador, marking the end of its physical presence in that country. However, being a global company, it will continue to be available for Salvadorans who wish to operate on it.

The reason that led Paxful to reduce its staff was the bear market, according to Bitnewsbot’s sources. In addition to its employees in El Salvador, other people from various Latin American countries were also dismissed from the firm, which has decided to focus on projects in other countries.

Indeed, the bear market that bitcoin (BTC) and cryptocurrencies in general are experiencing has already caused similar situations in other companies in the sector.

On the other hand, Paxful will transfer the management of its educational project La Casa del Bitcoin, which it had started in February 2022. Since then, more than 5,000 people passed through its classrooms for training on bitcoin and cryptocurrencies.

Now, The House of Bitcoin will move to another building and will be a collaborative project coordinated by Built With Bitcoin Foundation, according to a press release from the organization.

The project will involve several companies in the sector, such as Bitrefill, Empreus Capital, DitoBanx, Galoy, Bitcoin Beach Wallet, Netki and Athena Bitcoin.

Read Also: Paxful Grants Academic Scholarships to Female Afghan Refugees #BuiltWithBitcoin

Other sources point to legislative disagreements in El Salvador

According to another source who asked not to be identified, Paxful’s decision may have to do with disagreements over the Digital Assets Law, which was introduced in November in the Assembly of El Salvador and is moving towards its final approval, as reported by this newspaper.

While the law targets digital assets in general, the focus of the agencies created through that regulation “would mainly focus on bitcoin-related companies” and not on those that also operate with other cryptocurrencies.

The aim is to limit the emergence of public offerings of digital assets that could be scams and put those who invest in them at risk, the text of the bill explains.

This is something that, indirectly, would complicate the development of companies that are not “Bitcoin-only” and motivate them to desist from their investments in the country, said the anonymous source consulted by this media.

Read Also: El Salvador received more than USD 115 million in bitcoin remittances in 2022

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