Venezuela Strengthens Crypto Controls to Protect Bolivar Value

• Venezuela’s banking watchdog, Sudeban, is attempting to create a mechanism to monitor crypto-related transactions in real-time.
• Analysts have linked the recent drop in the value of the bolivar to the situation in P2P crypto markets.
• The Venezuelan government has blocked more than 75 bank accounts connected to suspicious cryptocurrency transactions.

The Venezuelan government has recently announced measures to strengthen its control over the local cryptocurrency markets, in order to protect the value of the bolivar. Through its banking watchdog, Sudeban, the government is looking to create a system to monitor crypto-related transactions in real-time. This move comes after numerous analysts have linked the recent drop in the value of the bolivar to the situation in peer-to-peer (P2P) crypto markets.

The Venezuelan banking watchdog Sudeban has explained that it is currently in the process of designing a system to monitor banking transactions in real-time, with the help of Sunacrip, the national cryptocurrency regulator. While details of the mechanism have yet to be announced, the organization has stated that its objective is to “fight the irregular practices that attack our currency and the stability of the exchange market”. This suggests that the government is looking to examine the link between the volumes exchanged in cryptocurrency markets and the U.S. dollar – Venezuelan bolivar exchange rate.

In addition to this measure, the Venezuelan government has also blocked more than 75 bank accounts due to suspicious activity related to cryptocurrency transactions. This is part of a broader effort to protect the value of the bolivar, as the government believes that unregulated crypto markets are having a negative effect on the stability of the currency.

The recent moves by the Venezuelan government have been welcomed by many in the local cryptocurrency community, as it is seen as a sign that the government is taking the issue seriously and is willing to invest in the necessary infrastructure to combat any illicit activity in the space. It remains to be seen how effective these measures will be in stabilizing the currency, however, it is a positive step towards creating a safer and more regulated crypto environment in Venezuela.