All Cryptocurrency Companies In Venezuela Stop Their Activities

Venezuelan authorities demanded that cryptocurrency exchanges and mining companies stop all their business activities.

According to reports, the government decided to take this measure due to the investigation into a massive corruption case that could lead to about $20 billion flowing out of the country.

The accused are several politicians close to President Nicolas Maduro and people from the administration of Petroleos de Venezuela, the state-owned oil and gas company that is one of the largest hydrocarbon exporters in the world.

It is not yet known when Venezuelan crypto companies will be allowed to resume operations and how long the investigation will last.

Domino Effect in Venezuela

Venezuela has been under pressure for many years due to its positive cryptocurrency adoption efforts. The country has already faced many problems due to the sanctions imposed by the United States of America against the authoritarian regime of President Nicolas Maduro.

Moreover, in 2020, the U.S. authorities charged the blockchain and digital currency-friendly Venezuelan President Nicolas Maduro and 14 other high-ranking government officials with narco-terrorism and engaging in illegal business, especially drug trafficking, using payments in cryptocurrencies to cover their tracks and evade sanctions.