Paxful Launches Peer-to-Peer Trading Between Gold and Bitcoin

Peer-to-peer (P2P) cryptocurrency market Paxful introduced the introduction of help for commerce between gold and Bitcoin (BTC) on the platform on April 7.

With the announcement, Paxful now facilitates bodily buying and selling in 16 completely different international locations.

Cointelegraph spoke to Paxful CEO and Founder Ray Youssef, who attributed the choice to help gold to “surprisingly excessive” buyer demand.

When a commerce is entered, the Bitcoin will stay in Paxful’s escrow till the bodily supply of the gold is confirmed. Transactions should be accomplished inside 21 days of commerce being opened on the platform. 

Paxful won’t bodily monitor or contact the gold traded on the platform, with Youssef stating that the trade will take “a light-touch-approach” the place attainable.

Obligatory KYC for accounts which have traded over $50 in gold

Youssef states that Paxful expects gold buying and selling will broaden the trade’s presence in Africa — “the place excessive gold concentrations will grant them entry to Bitcoins they might haven’t have been capable of buy in any other case.”

To adjust to Anti-Cash Laundering obligations, Paxful requires full identification and tackle verification when a consumer exceeds a complete gold transaction of $50 over the historical past of their account. 

Customers who want to promote gold on the platform could face “ongoing enhanced due diligence” checks. Youssef provides that Paxful’s authorized and compliance groups have “completely reviewed” the regulatory implications of supporting gold buying and selling.

Two weeks in the past, Paxful introduced a partnership with blockchain forensics agency Chainalysis to observe transactions on the platform to establish indicators of illicit conduct.

Youssef states that Paxful has been planning so as to add help for commerce between Bitcoin and different “items and property to the platform for some time.”

As such, the Paxful CEO states that gold was the plain subsequent step for them, emphasizing that the commodity has been “used as a retailer of worth for millennia.”

“With the latest financial downturn, folks nonetheless desire gold as a secure funding with some already reporting shortages of provide,” he provides.