- Venezuela blocks access to Binance.
- Cryptocurrency users in Venezuela cannot access their savings or make P2P transactions.
In recent weeks, since the general elections, Venezuela has been the scene of violence and riots. The government is trying to control access to information and citizens are facing censorship.
In its latest move, the government has blocked access to the cryptocurrency exchange Binance.
Venezuela blocks Binance
According to the latest report from Venezuela, CANTV, the government-owned ISP, has blocked access to Binance.
CANTV, the company that controls much of the country’s broadband market, has cut off many citizens’ access to Binance, leaving users unable to access savings or P2P transactions on the exchange.
The decision to block access to Binance comes alongside a recent government move to crack down on growing anti-government movements.
Binance, through its official communication, acknowledged the State’s move, noting that,
“Like other corporate websites from different segments in Venezuela, including social networks, Binance’s pages have faced access restrictions.”
The cryptocurrency exchange further added:
“We want to assure you that your funds are safe under our rigorous security protocols. We understand the inconvenience and concerns this situation may cause. We are monitoring the situation closely to address it as efficiently and quickly as possible.”
It is worth noting that Binance is the country’s leading P2P exchange, and this move aims to compromise people’s ability to trade, thereby impacting their financial capacity.
Censorship in Venezuela amid anti-government riots
Since the elections, Venezuela has used censorship to control the population’s access to communications. The government has restricted access to several social networks, including Reddit, Signal, Mercado Libre and X.
As part of the crackdown, social media platform X (formerly Twitter) has faced massive restrictions, with Venezuelan President Elon Musk accusing him of spreading hate and misinformation.
President Nicolas Maduro said on X that,
“X out for #10Días from Venezuela! Our country has a Constitution, Laws, Institutions and a State. 10 days to present your documents. Let the projects on social networks to spread violence, hatred and attack #Venezuela from abroad stop.”
Therefore, the recent restriction on cryptocurrency exchanges is part of the broader state policy aimed at regulating the flow of information.
Impacts on the country’s crypto community
With Binance being the most popular cryptocurrency exchange in the country, crypto users are being hit hard. This move means that users are unable to make any P2P transactions, affecting their access to fiat currencies and their ability to earn money from cryptocurrencies.
Similarly, many crypto users who turned to cryptocurrencies to store their savings due to poor economic performance will not have access to them. As a result, the crypto community in Venezuela has suffered a major blow.
What about Binance Coin?
Despite Binance’s restrictions, Binance Coin reported a 14% increase in trading volume over the past 24 hours, reaching $1.6 billion.
At the time of writing, BNB is trading at $504.97 after registering a 19.42% increase on the weekly charts. However, it is down 5.17% on the daily charts with a reduced market cap.
Source: Tradingview
Essentially, the decline on the daily charts is not an isolated case related to the restrictions imposed on Venezuela, but a broader market trend, with most altcoins down on the daily charts. As Michaël van de Poppe notes, the trend indicates that,
“#Altcoin market cap is down 60% from ATH, while Bitcoin is down only 15%. There is still plenty of upside potential for altcoins.
Source: X
