Venezuelan Bank Blocks Over 75 Crypto-Related Accounts

Consumer accounts linked to cryptocurrency trading, especially those involving peer-to-peer (P2P) transaction activity, have attracted the attention of Venezuelan banks.

Private banks in Venezuela have frozen more than 75 accounts to enable crypto-to-fiat and fiat-to-crypto transactions since the end of 2021, claims LegalRocks, a crypto and blockchain-focused law practice in Venezuela. .

Banks in Venezuela are paying more attention to frequently involved accounts Bitcoin Exchange. More than 75 cases of funds frozen or under investigation have been registered since the end of 2021, according to a blog post by Venezuelan law practice Legalrox, which specializes in cryptocurrencies and blockchain.

Ana Ojeda: It is unfair to close these accounts

According to Ana Ojeda, CEO of LegalRocks, closing these accounts to collect fiat money in exchange for cryptocurrencies cannot be justified. Still, she says, the situation changes if there is strong indication that the money spent in these transactions is connected to illegal or criminal activity.

Similarly, Ojeda said that financial authorities may consider transactions made through cryptocurrency exchanges that are not approved by SunCrip (the national superintendent for crypto assets) to be considered.

Ojeda noted that due to the economic crisis this year and the severe devaluation of the country’s fiat currency (the Venezuelan bolívar), stablecoin Transactions through P2P marketplaces are widespread. This implies that stable coins are used as a store of value by individuals who buy them while receiving fiat money as payment and then use more fiat money to make purchases and pay for services. exchange them for.

Venezuela tops the crypto charts

According to a United Nations report released in July, Venezuela ranks third among countries that have adopted cryptocurrencies.

“As the LATAM nation most likely to use cryptocurrency to protect itself against inflation and declining savings potential, Venezuela has been dominating the sector for a few years now.”

Ana Ojeda, CEO of LegalRocks

In Venezuela, stablecoin-based P2P markets have become so widespread and popular that some observers believe they can significantly influence the movement of the dollar-bolivar exchange rate.

Asdrubal Oliveros, an economist, suggested that ftx The collapse, fear of storing assets on custodial exchanges, the interaction of crypto markets with the larger economy, and the 40% drop of the Bolivar against the US dollar in November, as possible reasons for the increase in crypto and stablecoin usage.


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