- Venezuela blocks access to Binance.
- Crypto users in Venezuela cannot access their savings or conduct P2P trading.
As a crypto investor who has witnessed the tumultuous economic landscape of Venezuela for years, I can’t help but feel a pang of concern when I hear about the government’s latest move to block access to Binance. Living through hyperinflation and economic instability, many Venezuelans have turned to cryptocurrencies as a means of securing their savings. The fact that the government is now targeting one of the main platforms for crypto trading in Venezuela, Binance, speaks volumes about the desperation of the regime to control its citizens.
Over the past few weeks following the country’s general election, Venezuela has been plagued by prolonged instances of violence and civil unrest. In an effort to restrict the flow of information, the government has imposed censorship on its citizens.
In the latest move, the government has blocked access to the crypto exchange Binance.
Venezuela blocks Binance
Based on recent updates, the state-controlled internet service provider, CANTV from Venezuela, is reportedly restricting access to Binance.
In essence, the predominant broadband service provider in the country, CANTV, has caused a disruption for many citizens, preventing them from reaching Binance. As a result, users are finding it challenging to manage their savings or engage in peer-to-peer transactions on the platform.
The restriction on Binance access coincides with the government’s current efforts to suppress increasing pro-opposition activities.
Binance, through its official communication, acknowledged the state’s move, noting that,
Similar to many corporate sites across various industries in Venezuela, such as social media platforms, the pages for Binance have encountered access limitations.
The crypto exchange further added,
“Rest assured, your money is secure with us using strong safety measures. We realize that this circumstance might bring some trouble and worry, but we’re keeping a close eye on the situation to resolve it efficiently and promptly.”
Significantly, Binance stands as the nation’s primary Peer-to-Peer trading platform. This action is designed to limit trading activities, potentially affecting individuals’ financial capabilities for transaction.
Venezuela’s censorship amid anti-government riots
Following the election, the Venezuelan government has resorted to censorship as a means to limit people’s ability to communicate. They have imposed restrictions on several social media platforms such as Reddit, Signal, Mercado Libre, and X.
In the current clampdown, social media platform X (previously known as Twitter) has experienced significant limitations, with the Venezuelan president alleging that Elon Musk is propagating hatred and false information.
President Nicolas Maduro shared on X stating that,
“X is taking a 10-day break, starting from Venezuela! For the next 10 days, we ask you to submit your necessary documents. Let’s put an end to online plans aimed at instigating violence, hatred, and attacking Venezuela from foreign territories.”
In my study, I’ve observed that the recent limitations imposed on cryptocurrency exchanges align with the broader regulatory efforts aimed at controlling and managing the dissemination of information within the state.
Impacts on the country’s crypto community
Due to Binance being the nation’s leading cryptocurrency trading platform, a significant number of crypto users have been impacted. This action prevents users from carrying out any Peer-to-Peer (P2P) transactions, thereby limiting their access to fiat currency and their potential earnings through cryptocurrencies.
Similarly, numerous crypto users, driven by weak economic conditions to save their funds through cryptocurrencies, may find themselves shut out. Consequently, the Venezuelan crypto community has sustained a significant blow as a result.
What about Binance Coin?
In spite of Binance imposing restrictions, the Binance Coin has experienced a 14% increase in trading activity within the last 24 hours, reaching a volume of approximately $1.6 billion.
Currently, BNB is being traded at approximately $504.97, marking a significant 19.42% increase over the past week. But on a daily scale, there’s been a slight downturn of 5.17%, causing a decrease in its market cap.
Fundamentally, the drop in daily price movements isn’t just about Venezuela’s restrictions but rather a broader market pattern, as many alternative cryptocurrencies are also experiencing downward trends on their daily charts. According to Michaël van de Poppe, this trend suggests that the overall market is moving in this direction.
“The #Altcoin market capitalization is down 60% from the ATH, while Bitcoin is only down 15%. Lots of upside for altcoins still to come.
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2024-08-12 16:08