Venezuelan Banks are now inspecting the accounts of customers engaged in cryptocurrency trading, mainly related to peer-to-peer (P2P) transactions. According to Legalrocks, a law firm that specializes in crypto and blockchain, more than 75 accounts have been blocked since late 2021 for crypto-to-fiat or fiat-to-crypto conversions.
Venezuelan Financial Institutions Scrutinize Crypto Accounts
Venezuelan Financial Institutions are increasingly monitoring accounts linked to cryptocurrency trading. According to a blog post published by Legalrocks, a law firm focusing on cryptocurrency and blockchain, more than 75 accounts have been suspended or investigated since 2021.
Ana Ojeda, CEO of Legalrocks, states that blocking these accounts for receiving fiat currency in order to sell or exchange cryptocurrency should not be viewed as a valid reason. However, she states that this can change if adequate evidence is available that these funds were used for illegal or criminal activities.
The same applies to transactions made through cryptocurrency exchanges that are not authorized by Sunacrip, the national superintendency for crypto assets. These could be considered suspicious and warrant an investigation.
Stablecoin Popularity
Ojeda explains that stablecoins are traded on P2P markets due to the economic crisis and high devaluation rates of the national fiat currency, the Venezuelan bolivar. This year, the bolivar has seen a sharp decrease. This means that stablecoins are used as a store-of-value by people who receive fiat currencies as payment, then exchanging them for goods or services.
According to a United Nations report from July, Venezuela is third in the top three countries with the highest adoption of cryptocurrency.
According to Ojeda:
Venezuela has been the leader in the region as the Latin American country that uses cryptocurrency most often to protect itself against inflation and loss of savings capacity.
P2P marketplaces based on IP have become so widespread and popular in Venezuela that certain analysts believe they are playing a substantial role in the dynamics of the US dollar-bolívar exchange rate. In November, economists were able to take advantage of the 40% drop in the bolivar against the US dollar when it was lower than before. Asdrúbal Oliveros cited possible causes as the interaction between crypto markets and the broader economic system, the collapse of FTX, and the fear of having funds in custodial accounts.
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