Venezuela's Crypto Purge to Continue Against Crypto Transactions Through Bank Accounts
In an expected twist of events, the government of Venezuela announced the monitoring of bank accounts 0f individuals involved in cryptocurrency-related transactions. The move is in response to an alleged elaborate plan by apparent money-mafias that plans to undermine the country's new currency, Petro coin. Vice President, Tareck El Aissami added that any individual found of illegal cryptocurrency-related transactions is bound to face severe punishment, accordingly.
The Petro Coin
Since its launch back in February, the Petro coin has elicited mixed reactions as it aims to solve one of most significant economic disasters and rampant inflation of our time. However, with the issuance of an asset-backed token, the use of digital currency is bound for manipulation, and this is the biggest problem for Venezuela's new prized currency. And to prevent the new digital money from becoming worthless like the Bolivar
Initially, before the decision to monitor bank accounts for crypto transactions, Venezuela's government was already on course with its plan to reduce illegal crypto activities. The regime's strategy relied on the Operation Paper Hands plan to eliminate apparent price distortion and capital flight through cryptocurrencies. The operation bore casualties in the form of three cryptocurrency exchanges (AirTM, Rapidcambio, and Intersach).
While the Operation Paper Hands focused on the institutions and exchanges, the new phase (Operation Metal Hands) will crack down on the individual-basis to fight against illegal cryptocurrency activities. The Vice President further quotes that the operation was part of the efforts to realign the country's financial system and eliminate the use of cryptocurrency in gang-related activities. In a publication by Aporrea, he states,
“This is part of the war to hit the financial system, of the country and the government will exercise future actions to hit those planning to conspire through cryptocurrencies.
Will The Crackdown End?
Revelations from the Vice President indicated that the Operation Paper Hands led to the freezing of more than 1,000 bank accounts with Banesco bank experiencing the closure of accounts worth 5 billion bolivares. That does show the extent to which the Venezuela regime can go to protect their digital cryptocurrency.
However, these actions have raised more speculation as to whether the Venezuelan government is genuine in its goal. Some pointers indicate that the government is looking to control the country's crypto markets by closing down on certain exchanges while also authorizing their line of exchanges for foreign exchange remittances and transactions