Venezuela Heats Up, Binance Access Is Limited

The Venezuelan government limits the Binance crypto exchange. (Photo; Doc. Blocmates)

JAKARTA - The Venezuelan government is again taking controversial steps by limiting access to Binance, the world's largest crypto asset trading platform, amid the heated post-presidential election political situation.

This move adds to the complexity of already severe economic problems, especially for Venezuelans who rely more and more on crypto as a hedge against national currency devaluation, the bolivar.

On August 10, Binance through its Latin American-focused X account confirmed the problem of access experienced by users in Venezuela. While promising that user funds remain safe and problems will be addressed soon, this announcement raises panic.

Many users are starting to consider using VPN to access the platform. However, Binance had previously warned that the use of VPN could lead to account suspension.

Crypto Users Soar

In the last two years, cryptocurrencies like Bitcoin have become the first choice for Venezuelans to secure their assets from a sharp decline in the value of the bolivar. Since August 2022, the US dollar exchange rate against the bolivar has increased more than sixfold, prompting many people to switch to crypto.

According to a report from Chainalysis, a blockchain analysis firm, crypto purchases using bolivar have increased whenever the national currency experienced a significant decline in value.

The restriction on access to Binance was only a day after President Nicolas Maduro imposed a temporary ban on social media platform X, which Elon Musk owns.

Maduro accused Musk of spreading hatred and inciting civil unrest after the results of the controversial presidential election. The election, which had just been held, sparked strong protests from the opposition side led byEO Gonzonglez. Opposition rejected Maduro's claim of victory, stating that they had a significant majority vote.

This heated political situation further complicates Venezuela's economic condition. Restrictions on access to Binance, which was previously considered a way out for many residents in dealing with the economic crisis, are a major blow to those who now have to struggle to find other ways to protect their assets.