SpankPay, a cryptocurrency payment service for the adult industry, has announced that it is shutting down. The company had been in operation for four years, offering a secure and discreet payment option for those in the adult entertainment space. However, increased regulatory pressure and changes in the payment industry have made it increasingly difficult for the company to operate. SpankPay’s closure highlights the ongoing challenges faced by adult industry businesses in accessing payment services and underscores the need for innovative solutions that can address this issue. Despite its closure, SpankPay remains committed to its mission of promoting financial freedom and privacy in the adult industry.
SpankPay, an adult-themed payment service, has announced its closure after its upstream payment processor, Wyre Payments, terminated its agreement with the company, citing “violations of any third-party payment processor or network rules.” SpankPay, which launched in August 2019 and allowed users to pay for adult content using cryptocurrencies such as Bitcoin and Ethereum, claimed that its contract was singled out. The company asserted that “this was a targeted shutdown by Wyre because their new payment processor, Checkout.com, doesn’t work with adult businesses,” according to a tweet it posted.
However, this isn’t the first time that the adult industry has faced issues when it comes to the traditional financial system. In December 2020, after Visa and Mastercard blocked their credit cards from being used on Pornhub, the pornographic website began accepting cryptocurrency. Similarly, SpankPay advisor Allie Knox mentioned that they have been working to resolve legislative problems that cause issues for their industry.
Despite the setback, the team behind SpankPay is shifting its focus to its other products and plans to change the legislative problems that cause this issue. It also said it would ensure that its users receive their money as soon as possible. SpankPay has faced challenges finding other service providers to offer financial services to a business catering to the adult industry. The company’s team is exploring the use of crypto wallets to encourage personal financial sovereignty and is motivated more than ever to end extra-legal censorship practices enforced by financial institutions.
In terms of the cryptocurrency industry overall, it has long been acknowledged as a way to avoid censorship and discrimination from traditional financial institutions. Despite the challenges faced by SpankPay, it and other adult-themed crypto companies still believe in the potential of cryptocurrencies to provide individuals with financial freedom. However, given the numerous challenges it faces, it remains to be seen how the industry will evolve in the coming years.