Why Paxful Doesn't Offer Services in Certain Jurisdictions
At Paxful, our mission is to provide a safe and accessible platform for peer-to-peer cryptocurrency trading. As a US-based company, we adhere to the highest standards of compliance and regulatory obligations. This commitment requires us to operate within the framework of various laws and regulations, including those set forth by the Office of Foreign Assets Control (OFAC).
Compliance with OFAC Sanctions
OFAC, a division of the U.S. Department of the Treasury, administers and enforces economic and trade sanctions against targeted foreign countries and regimes, terrorists, international narcotics traffickers, and those engaged in activities related to the proliferation of weapons of mass destruction. These sanctions are critical in protecting national security and maintaining international peace.
As a US-based company, Paxful is legally obligated to comply with OFAC regulations. This means we cannot provide services to individuals or entities listed on OFAC's Specially Designated Nationals (SDN) list, nor can we engage in transactions with certain countries and regions under comprehensive sanctions. These jurisdictions typically include, but are not limited to, countries like North Korea, Iran, and Syria.
Risk-Based Approach to Regulatory Compliance
Beyond complying with OFAC sanctions, Paxful employs a risk-based approach to determine which countries we can operate in. This approach involves a thorough analysis of various factors, including but not limited to:
- Regulatory Restrictions: We evaluate the legal and regulatory frameworks of each jurisdiction to ensure our operations comply with local laws and regulations. This includes understanding licensing requirements, AML (Anti-Money Laundering) obligations, and other financial regulations.
- Financial Crime Risk: We assess the risk of financial crimes such as money laundering, fraud, and terrorist financing associated with operating in a specific jurisdiction. This helps us mitigate potential risks and protect our users and the broader financial system.
- Economic and Political Stability: Countries with unstable economic or political environments may pose significant risks to our operations and our users. We consider factors such as government stability, economic performance, and the potential for civil unrest.
Unsupported Countries
Below is a list of countries and regions where Paxful does not offer services due to the aforementioned sanctions, compliance and risk considerations:
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This list is subject to change based on ongoing regulatory reviews and global developments. Please check back regularly for updates.
Commitment to User Safety and Compliance
Paxful's primary concern is the safety and security of our users and their transactions. By adhering to OFAC sanctions and applying a rigorous risk-based approach, we can maintain a compliant and trustworthy platform. We understand that these restrictions may limit access for some users, but they are essential for ensuring that Paxful operates within the bounds of the law and maintains the highest standards of integrity.
We continuously review and update our policies to reflect changes in the regulatory landscape and strive to expand our services responsibly. Our goal is to make cryptocurrency accessible to as many people as possible while ensuring a secure and compliant trading environment.
If you have any questions or need further information about our compliance policies, please don't hesitate to contact our Support team. We are here to assist you and provide clarity on any concerns you may have.
Restrictions For Customers in Some US States and Territories
Due to regulatory restrictions, Paxful is unable to offer services to individuals located in the following States and Territories:
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Please be advised that if you are residing in any of these areas, your Paxful account will not be activated. Additionally, even if you are a resident of a supported state or jurisdiction, you may not be able to access Paxful while you are physically located in an unsupported state or jurisdiction.
USDT and USDC Restrictions
Due to regulatory restrictions, we must prohibit access to stablecoins Tether (USDT) and USD Coin (USDC) for Paxful users residing in Texas. This includes trading, withdrawing, depositing, and converting USDT and USDC.
We apologize for any inconvenience this may cause. We are fully committed to complying with all relevant laws and regulations and are actively working towards further expansion. We are continually working to expand our service areas, so please check back at a later time to see if we can support you.
For any additional questions, please contact our Support team.