The Peer-to-Peer (P2P) crypto exchange Paxful has launched trading between Gold and Bitcoin (BTC) in response to customer demand.
The service offers a transfer procedure and a swap option. The parties need to negotiate terms first, after which the transfer of gold will take place in person. The BTC holder has to send the funds into a Paxful escrow until the gold seller confirms the transfer and the receipt is approved. This is when the BTC gets released by Paxful. The process has to take place in 21 days since the payment has been initiated. In case it doesn’t, the parties go through dispute arbitration.
KYC Transfer Protocols to Be Respected
The trades with gold must respect the exchange’s Know-Your-Customer (KYC) transfer protocols if they’re valued at more than $50, says a press release. Paxful has recently started using crypto intelligence tools from Chainalysis. Its CEO, Ray Youssef, says the procedure for gold trading is formal and similar with bank transfers because it’s executed by listing the payment method, whereas the payments are not negotiated on the platform. Here’s what he said on how the service is evolving:
“Our users were already starting to do this on quite a large scale. We weren't aware of it because it was difficult to track. We actually had to go in and talk to people.”
No Other Crypto Exchange Offers the Feature
The new gold feature is unique among crypto exchanges, putting Paxful on the list of go-to crypto firms when it comes to services that are rather ignored in the industry. Countries like Venezuela, Nigeria, Ghana and Malaysia will be able to benefit from it. Youssef says these countries are usually neglected by companies that only focus on the US and Europe. His exact words about this were:
“The west is not the entirety of the world. The vast majority of humans are outside of the west in emerging markets and they are hungry, they’re not going to let anything stop them – COVID-19, Ebola, they don't give a damn, they're going to continue to do business.”
He also predicted that trading goods between people in person is going to be irrelevant in the long run in case of a pandemic, especially in Africa. Meanwhile, Paxful didn’t have a problem with the global shutdown and had in March a 27% increase in registrations.