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Venezuela puts capital controls on Bitcoin money transfer amidst record volume

Venezuela continues to reach new heights in terms of the weekly Bitcoin trading volume. Meanwhile, the countryThe government has issued new rules that charge fees for Bitcoin payments.

2,545 BTC: new trading platform for Bitcoin per week

According to data from Mint dance, Venezuelans traded 2.454 BTC via Localbitcoins (the P2P trading platform) for the week ending 9 February 2018. This figure exceeds the 2,004 BTC recorded in the previous week.

The volume of last week is the highest ever measured in the country. In terms of VES, the country's besieged fiat currency, ownership of Bitcoin's 24 billion VES has changed in ownership over the period, an increase of 41 percent compared to the week ending 2 February 2019.

With the continuing political, social, economic unrest in the Latin American state, citizens stay confident on Bitcoin and other cryptocurrencies to survive. The current distance on the political scene, the already acute problem of forex deficiency and hyperinflation will certainly further worsen.

15 percent fee for Bitcoin money transfers

As the Bitcoin trade volume rises, government officials come into action and introduce excessive costs for payments through cryptocurrency transfers in the country.

According to the announcement published in the Official Gazette 41581 on 7 February 2019, the National Superintention of Cryptoactives and Related Activities of Venezuela (SUNACRIP) now oversees the cryptocurrency-based transfer in the country.

SUNACRIP can now set limits for payments with cryptocurrency. An excerpt from the decree published by local crypto news media Criptonoticias, reads like follows:

The award defines commissions ranging from 0.25 euro ($ 0.28) as the minimum rate per transaction to 15% of the funds transferred in cryptocurrencies [sic]. In addition, the sending of transfers is limited to a monthly amount that corresponds to 10 Petros (PTR), a cryptocurrency [sic] made by the Venezuelan government.

The notification also sets an upper limit for the cryptocurrency payments associated with $ 3,000.

The reaction of many commentators to this issue was unanimously negative. The imposition of cryptocurrency-remittance costs is counterproductive for the essence of international payments via cryptocurrency, which is the removal of exorbitant fees charged by regular services.

According to the World Bank, the global average payments are series between 5.2 percent and 9.4 percent. The reimbursement structure of SUNACRIP makes crypto transfer effectively more expensive than fiat.

This new directive comes to the heels of a previous law that strives for to punish what the state regards as unauthorized use of cryptocurrency.

What do you think of the payment costs that are imposed on Bitcoin and other cryptocurrency transactions by the Venezuelan state?? Let us know your opinion in the comments below.

Images courtesy of coin.dance and Twitter (@SunacripVe), Shutterstock

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