Venezuelan Banks Have Blocked More Than 75 Accounts Since Late Last Year Over Cryptocurrency-Related Activity Cryptocurrency

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Venezuelan banks have begun monitoring customer accounts related to cryptocurrency trading, primarily related to peer-to-peer (P2P) transaction activity. According to Legalrocks, a Venezuelan crypto and blockchain-focused legal firm, more than 75 accounts have been blocked by private Venezuelan banks for facilitating crypto-to-fiat and fiat-to-crypto conversions since the end of 2021.

Venezuelan Banks Suspend Crypto-Related Accounts

Venezuelan banks are increasing their vigilance over accounts that are usually linked to cryptocurrency transactions. According to a blog post published by Legalrocks, a Venezuelan law firm specializing in cryptocurrency and blockchain, more than 75 cases of accounts suspended or under investigation have been registered since the end of 2021.

Ana Ojeda, CEO of Legalrocks, says that using these accounts to receive fiat currency for a sale or exchange of cryptocurrency should not be considered a valid reason to block them. However, she clarifies that this changes if there are enough signs that the funds used in these transactions are linked to illegal or criminal activity.

Similarly, transactions going through cryptocurrency exchanges not authorized by Sunacrip, the national superintendence of cryptocurrency assets, could also be considered suspicious by financial authorities, and warrant investigation.

Love Stablecoin

Ojeda explains that trading stablecoins via P2P marketplaces is common due to the economic meltdown and high levels of devaluation that the national fiat currency (Venezuelan bolivar) has experienced over the past year. This means that people use stablecoins as a store of value, buying them when they receive fiat currency as payment, then exchanging them again for fiat currency to buy goods and pay for services.

According to a report presented by the United Nations in July, Venezuela ranks third among the countries with the most adoption of cryptocurrency.

According to Ojeda:

Venezuela has been leading the region for several years as the Latam country that uses cryptocurrencies the most to protect against inflation and the loss of savings capacity.

Stablecoin-based P2P markets have become so popular and widespread in Venezuela that some analysts believe they could play an important role in the dynamics of the US dollar-bolivar exchange rate. In November, when the bolivar fell 40% against the US dollar, economist Asdrubal Oliveros mentioned the interaction of the crypto markets and the economy as a whole, as well as the collapse of the FTX and the fear of holding funds on custodial exchanges, as a possible cause.

What are your thoughts on Venezuelan banks suspending or investigating crypto-related accounts? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late in the game, entering the cryptosphere when the price spike happened in December 2017. Having a background in computer engineering, living in Venezuela and impacted by the cryptocurrency boom at the social, it offers a different point of view. on the success of crypto and how it helps the unbanked and underserved.

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