Paxful Allows Peer-to-Peer Trading of Gold for Bitcoin
The peer-to-peer bitcoin exchange Paxful has announced the introduction of Gold trading on April 7. With the announcement, Paxful start the physical trading of Gold in 16 countries.
CEO and Founder of Paxful Ray Youssef said that the introduction of Gold is “highly surprising” for customers.
When a trade opens for Gold, the Bitcoin are held in the paxful escrow until the delivery of physical gold is confirmed. The delivery and transactions must be completed within 21 days after the begining of a trade.
Paxful will not track or deliver the physical gold on this Youssef stated that they will take “a light touch approch” if needed in some cases.
Paxful KYC is Mandatory for Gold Trading
Youssef believes that this step will give the platform a great exposure in Africa further added: “where high gold concentrations will grant them access to Bitcoins they may have not have been able to purchase otherwise.”
For Anti- Money Laundering and reduce the chances of scams, full identity, and address verification is necessary. Users can only buy or sell $50 worth of Gold without KYC on their account.
The seller of the gold may face “ongoing enhanced due diligence” checks. Youssef added that their team is taken care of all the regulatary implementtion of gold trading.
Youssef also said that the team is planning to add support for trade between Bitcoin and other “goods and assets to the platform for a while.” The Paxful CEO believes gold is a necessary step for them to increase their range because the Millenium is looking for a store of value assets. This is a new step in the cryptocurrency market.
He further adds: “With the recent economic downturn, people still prefer gold as a safe investment with some already reporting shortages of supply.”
Recently Paxful also announced a partnership blockchain forensics firm Chainalysis to track the transactions on the platform to identify illicit behavior.
