Venezuelan government believes crypto may impact value of bolivar

The Venezuelan banking watchdog, Sudeban, is working on a system to monitor crypto-related transactions in real-time in order to control any negative impact on the stability of the exchange market. 

This move is reportedly in response to the recent drop in the value of the bolivar, which some analysts have attributed to activity in the peer-to-peer (P2P) crypto market. To further protect the value of the bolivar, the government is reportedly seeking to monitor the movements of P2P exchanges that involve cryptocurrencies. 

In an article first published by Bitcoin.com, Sudeban, in conjunction with the national cryptocurrency regulator Sunacrip, is said to be developing a system with the goal of “fighting the irregular practices that attack our currency and the stability of the exchange market.” 

The organisation has not provided any additional details on the system, but it is believed that the government is examining the relationship between the volumes exchanged in the cryptocurrency market and the exchange rate between the bolivar and the US dollar.

Some analysts have suggested that the recent drop in activity in peer-to-peer (P2P) crypto markets, caused in part by the collapse of FTX, may be contributing to the rise in the bolivar-dollar exchange rate. 

However, it is also believed that other factors, such as the influx of fiat currency into the market during the holiday season, may also be contributing to this trend. 

While the Venezuelan government has not explicitly stated that there is a direct relationship between crypto and the bolivar, it obviously has its suspicions for it to monitor crypto transactions so closely. 

In relation to the government’s efforts to monitor these crypto-related transactions, Legalrocks, a national law firm focused on cryptocurrencies, has reported that more than 75 bank accounts have been blocked due to suspicious activity involving crypto transactions since the end of 2021.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.