According to Legalrocks, a crypto and Blockchain-focused law firm in Venezuela, private Venezuelan banks have blocked more than 75 accounts for facilitating crypto-to-fiat and fiat-to-crypto conversions since late 2021.
Venezuelan banks have begun to look at customer accounts linked to cryptocurrency trading, mainly related to peer-to-peer (P2P) transaction activity.
Venezuelan banks are increasing surveillance of accounts that are commonly related to cryptocurrency transactions. Since the end of 2021, according to a blog post published by Legalrocks, a Venezuelan law firm focused on cryptocurrency and Blockchain, there have been more than 75 cases of accounts being suspended or under investigation.
Venezuelan Banks Suspend Crypto-Related Accounts
Ana Ojeda, CEO of Legalrocks, states that using these accounts to receive fiat currency for a cryptocurrency sale or exchange should not be considered a valid reason to block them. However, she clarifies that this changes if there are sufficient indications that the funds used in these transactions are related to illegal or criminal activities.
Similarly, transactions made through cryptocurrency exchanges not authorized by Sunacrip, the national superintendency of cryptocurrency assets in Venezuela, could also be considered suspicious by financial authorities, and thus warrant an investigation.
Stablecoin Love
Ojeda explains that stablecoin exchanges through P2P markets are common, due to the economic debacle, as well as the high levels of devaluation that the national fiat currency (the Venezuelan bolivar) has experienced this year.
This means that people use stablecoins as a store of value, buying them when they receive fiat currency as payment, and then exchanging them for fiat currency again 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 cryptocurrencies.
According to Ojeda “Venezuela has been leading the region for several years as the Latin American country that uses cryptocurrencies the most to protect itself from inflation and the loss of savings capacity.”
Given the situation of blocked bank accounts in Venezuela, LegalRocks issued a legal opinion. In it, they clarify that, in accordance with the Constituent Decree on the Comprehensive System of Cryptoactives and Related Activities, the use of cryptocurrencies in the Caribbean country is a legal activity.
Stablecoin-based P2P marketplaces have become so popular and widespread in Venezuela that some analysts believe they could be playing a significant role in the dynamics of the US dollar-bolívar exchange rate.
In November, when the bolivar fell 40% against the US dollar, economist Asdrúbal Oliveros cited the interplay of crypto markets and the broader economy, along with the collapse of FTX and the fear of holding funds in custodial exchanges, as a possible cause.
By Audy Castaneda
