• Venezuelan banks have frozen over 75 accounts for enabling crypto-to-fiat and fiat-to-crypto transactions since the end of 2021.
• Ana Ojeda, CEO of Legalrocks, claims that shutting these accounts for collecting fiat money in exchange for cryptocurrencies can’t be justified.
• Financial authorities may deem transactions made via cryptocurrency exchanges which aren’t properly regulated as illegal activities.
Cryptocurrency has become a popular asset class in many countries and it has grown in popularity in Venezuela as well. Recently, Venezuelan banks have been paying more attention to accounts that frequently involve bitcoin transactions and have frozen over 75 accounts for enabling crypto-to-fiat and fiat-to-crypto transactions since the end of 2021.
The accounts of consumers with connections to cryptocurrency trading, particularly those connected to peer-to-peer (P2P) transaction activity, have caught the attention of Venezuelan banks. According to Ana Ojeda, CEO of Legalrocks, a crypto and blockchain-focused law practice in Venezuela, shutting these accounts for collecting fiat money in exchange for cryptocurrencies can’t be justified. Ojeda adds that if there are convincing indications that the money spent in these transactions is connected to unlawful or criminal activity, it changes the situation.
Furthermore, financial authorities may deem transactions made via cryptocurrency exchanges which aren’t properly regulated as illegal activities. This is why it’s important for individuals to be aware of the risks associated with cryptocurrency trading and to only use exchanges which are properly regulated and compliant with local laws.
Given the increased scrutiny from banks and financial authorities, it’s important for individuals to remain cautious when dealing in cryptocurrencies, especially when it comes to P2P transactions. It’s also critical to remain informed and up to date on the latest developments in the world of cryptocurrency and blockchain technology. By doing so, individuals can ensure they are able to safely and securely trade in cryptocurrency and avoid having their accounts frozen by banks.