Venezuela blocks Binance access amid election unrest

Venezuelans have been barred from trading on Binance. The crypto exchange is currently blocked alongside several other platforms as the nation’s recent election results have stirred chaos.

According to Binance’s Latin America-focused X account, the exchange has been facing access restrictions. The August 10 post highlighted that this block wasn’t limited to Binance but also affected other entities operating in the nation.

Funds remain safe

The restrictions initially came into effect on August 9, as confirmed by local anti-censorship organization VE sin Filtro on the day.

According to the organization, a “DNS block” has been put in place. The restrictions also affected the exchange’s mobile application.

🚨 Bloqueado Binance en CANTV 🚨

Esta noche detectamos un bloqueo DNS al exchange de criptomonedas @Binance, el cual afecta el normal funcionamiento de su web y su aplicación móvil.

El bloqueo fue detectado por primera vez a las 8:15 PM de hoy #9Ago pic.twitter.com/aivmVT2VNi

— VE sin Filtro (@vesinfiltro) August 10, 2024

Restrictions on Binance coincided with earlier reports that social media platform X had also been blocked. Venezuelan President Nicolás Maduro accused Elon Musk of promoting unrest in the nation via X before ordering the 10-day block.

However, no official announcements have been made regarding Binance and why it had been blocked. There is also no confirmation if the block is limited to the 10 days, as is the case with X.

At the moment, the crypto exchange has assured its customers that funds on the platform remain unaffected, adding that the situation was monitored and that the exchange is looking to address the situation “in the best and quickest way possible.”

Several Venezuelans have reported using VPNs to bypass the block, a tactic employed by crypto inventors across several jurisdictions that have restricted access to crypto platforms. VE sin Filtro also recommended this.  

As previously reported by Invezz, users in India have used this approach to trade on restricted platforms, including Binance, in response to the Financial Intelligence Unit’s block.

A nation in crisis

Venezuelans have long turned to cryptocurrencies as the nation’s economy has been plagued with inflation.

Locals have typically employed Binance’s peer-to-peer service, which allows users to exchange cash for cryptocurrencies directly with each other. But that hasn’t been without its challenges.

Last year, the crypto exchange dropped Banco de Venezuela, one of the largest banking institutions in Venezuela, from its peer-to-peer platform. At the moment, only private banks like Banplus and BBVA Provincial are supported.

The recent restrictions stem from broader political unrest in Venezuela between Venezuelan President Nicolas Maduro and his election rival Edmundo González. Venezuela’s electoral authority declared Maduro as the winner, but González claims his party’s findings reveal he is the winner with approximately 70% of votes in his favour.

A poll on the crypto-based predictions market Polymarket also leaned in favour of González.

Meanwhile, the nation continues to leverage cryptocurrencies to mitigate the effects of a dwindling economy and the pressure of U.S. sanctions. Earlier this year, reports emerged that Venezuela‘s PDVSA, the world’s fifth-largest oil exporter, was leveraging Tether’s USDT for fuel exports.

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