Venezuela Takes Action to Monitor Crypto Transactions, Protect Bolivar Value

• Venezuelan banking watchdog Sudeban is currently working on a mechanism to review crypto-related transactions in real-time to control the influence these have on the exchange market.
• The Venezuelan government is aiming to monitor the movements of crypto-based P2P exchanges to protect the value of the bolivar.
• Since the end of 2021, more than 75 bank accounts have been blocked due to suspicious activity related to cryptocurrency transactions.

The Venezuelan banking watchdog, Sudeban, has announced its plan to monitor cryptocurrency transactions in order to protect the country’s currency, the bolivar. The agency is currently working on a system to review crypto-related transactions in real-time, with the help of Sunacrip, the national cryptocurrency regulator.

The primary aim of the system is to “fight the irregular practices that attack our currency and the stability of the exchange market”. This means that the government is looking to investigate the correlation between the volumes exchanged in cryptocurrency markets, and the U.S. dollar – Venezuelan bolivar exchange rate. Analysts have recently linked the recent cryptocurrency drought in peer-to-peer markets, due to the collapse of FTX, to the sudden rise in the aforementioned exchange rate.

In addition to this measure, more than 75 bank accounts have been blocked due to suspicious activity related to cryptocurrency transactions since the end of 2021. This activity was identified by Legalrocks, a national blockchain intelligence organization.

The Venezuelan government is taking these steps to protect the value of the bolivar and ensure the stability of the exchange market. By monitoring cryptocurrency transactions, the government hopes to be able to identify and tackle any irregular activities that could adversely impact the currency and the market. The results of the monitoring system remain to be seen, however, these measures could be the first step in ensuring a stable economy in Venezuela.