The US cryptocurrency trading platform, Bittrex, will no longer function in Venezuela, according to a statement that its subsidiary, Bittrex International, has emailed to its Caribbean user base.
The cryptocurrency market is a very dynamic environment that may work today may not work tomorrow, as was the case with Bittrex International, one of the most important trade by volume, will stop providing its services to all residents operating in Venezuela for no reason. apparent.
The Malta-based exchange office, by email, informed its entire Venezuelan user base that asset exchange services would be restricted entirely to the people of that country, and it was notified that all those with balances on their respective accounts would have a limited limit until Tuesday, October 29, to withdraw their funds.
While Bittrex International outlines the causes of the blockade, the apparent reasons lack clarity, but the actions are presumably related to the latest resolutions of the president of the United States.
On August 5, 2019, the United States Administration's National Executive signed a new Executive Order identified as 13.884, in which the Venezuelan government is prevented from accessing US financial systems for as long as all properties and interests within the country are blocked.
As a result, several large companies and organizations such as Adobe, Oracle, and MLB have stalled their operations and business relationships with Venezuelan residents as a measure to avoid potential complications with the US government.
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Parts that do not fit
Although we assume that the restrictions may come from the executive order of the Trump administration, this hypothesis has some inconsistencies. Bittrex International accounts have KYC processes (Know Your Customer, or Know Your Customer and Anti Money Laundry (AML)), so that your users must provide a certain amount of personal data to Bittrex International with company. to authenticate your identity and that this is not included in any list of sanctions requested by Interpol or in cooperation with terrorist groups or other illegal activities. Similarly, people verified by Bittrex located in Venezuela had the same purpose as Other users in the country blocked accounts and funds with withdrawal deadlines.
On the other hand, the Spanish Cointelegraph was able to confirm through the company's official website that the blockades were not only limited to the South American country, but also to other regions of the world. The list is made up of a total of 31 countries including Afghanistan, Egypt, Bosnia and Herzegovina, Botswana, Cambodia, Central African Republic, Democratic Republic of Congo, Ivory Coast, Tunisia, Ethiopia, Uganda and Yemen.
Bittrex loses a professional Bitcoin market
Over the days, it is quite likely that there will be some blocking updates that may clarify the picture; however, Venezuela's departure from Bittrex coffers symbolizes the exclusion of a pro-encryption country. It is no secret that the serious political, social and economic crisis has led the country into a hyperinflationary spiral from which it has not yet been able to leave, allowing currencies such as Bitcoin (BTC) to thrive. According to Coindance, a company responsible for tracking some of the world's largest digital assets, in September Venezuela traded over 2,000 bitcoins through LocalBitcoins, which represents 9% of BTC's global trading volume. This fact makes Venezuela the second country with the highest turnover in the P2P market right after Russia, but above the United States.