The Venezuelan crypto exchange CoinCoinX has temporarily halted its operations as reported by thousands of customers unable to access their funds. This "pause" is due to the current regulatory situation in Venezuela which has made high costs for maintaining the platform, infrastructure, development, security and its work force. The funds of users are safe and the exchange declared that once they obtain the regulatory approval, the users will be able to transact as normal. In addition, a further major regulatory scrutiny has been implemented on the PetroApp platform leading to users claiming funds being frozen. The context of this policy shift is a larger crackdown on crypto mining and other corruption allegations by the government-run SUNACRIP regulator. It has been revealed by media reports that the former head of the commission was jailed, accompanied by other leading officials arrested. Also, the Petro logo has been removed from the SUNACRIP headquarters and the sign has been taken down, leading to speculation that the government is looking to dissolve the regulator. This unwelcome situation for the crypto sector comes at a time when Venezuela seeks to promote crypto-powered businesses and with the focus of international trade transitioning to crypto payments. The possibility of these funds being abused has Washington placing a freeze on international trade through economic sanctions, as it is estimated by the government that SUNACRIP officials have misappropriated up to $3 billion in crypto from state-run firms.



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