Regulators in Venezuela have temporarily banned large-scale Bitcoin (BTC) operations in response to ongoing corruption investigations. This move has stopped the use of BTC for the time being in the country.
The Venezuelan government is investigating several high-profile cases of corruption and is looking to crack down on any activities that may be facilitating these illegal activities. Degeneration is stated to be orchestrated by individuals within President Maduro’s inner circle and may have resulted in the loss of up to $20 billion.
The country’s Superintendencia Nacional de Criptoactivos (SUNACRIP) has been reported to have played a central role in liquidating sales following US sanctions against the company, thus making it an important institution in the investigation.
Following the involvement of SUNACRIP in such criminal activities, cryptocurrency exchanges and payment platforms that had registered licences to operate in Venezuela through the organizations have also been requested to halt their operations.
While the ban is only temporary, it is still a significant blow to the BTC community in Venezuela, which has been growing in recent years. BTC has become an increasingly popular alternative to the country’s troubled national currency.
The ban has been met with mixed reactions from the BTC community in Venezuela. Some have expressed frustration and concern about the ban’s impact on their businesses. In contrast, others have welcomed the move as a necessary step to curb corruption and promote transparency in the country’s financial system.
It remains to be seen how long the ban will last and the long-term implications for the BTC community in Venezuela.