- Venezuela blocks major platforms from the Internet.
- Binance assures users that funds are safe.
- Political turmoil rocks the country.
The Venezuelan government has escalated its efforts to control information flow during political unrest. The recent election, criticized by the opposition parties and civil rights groups, has escalated political violence within the country.ย
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Recently, Venezuela took steps to prevent citizens from accessing popular social media apps, such as Twitter and Signal messaging. However, the government also restricted the crypto exchange Binance, which is popular in the country.ย
Venezuela Blocks Access to Online Platforms
The political strife in Venezuela placed a major crypto exchange in the crosshairs of its government.ย On Friday, August 9, Binance users in Venezuela could not access the site exchange via its website. Soon after, reports emerged that Binance and X (formerly Twitter) and encrypted messaging app Signal were DNS blocked country-wide.ย
These actions followed a contentious presidential election on July 28, where President Nicolรกs Maduro and his opponent, Edmundo Gonzรกlez, claimed victory. Maduro’s government, which controls the electoral authority, declared him the winner with just over 51% of the vote.ย
The blocking of X and Binance followed the growing unrest in the country. Following the election, protests erupted across Venezuela, with many questioning the legitimacy of the results. In response to these protests, Maduro ordered the telecommunications regulator Conatel to enforce a 10-day ban on X, citing concerns over the spread of violence.
While it is unclear why Binance was also targeted, its services were vital for Venezuelans to weather the economic crisis in the country.
Why Binance is Key for Venezuelans
The political strife in Venezuela follows decades of political and economic instability. Due to the economic instability, especially a weak currency, Venezuelans began relying heavily on crypto. Binance, in particular, became very popular due to its peer-to-peer (P2P) service.ย
Binanceโs P2P allows users to trade their devalued national currency bolรญvar for more stable cryptocurrencies like Bitcoin. This service was critical for Venezuelans to preserve their wealth amid the ongoing economic crisis.ย
In response to the DNS block, Binance has reassured its Venezuelan users that their funds are secure. However, it is currently unclear what the long-term effects of this move will be and how long it be in effect.ย ย
On the Flipside
- This decision to block Twitter came shortly after a public spat between Maduro and Twitterโs owner, Elon Musk. Musk called Maduro a dictator and offered to send him to Mars.
- Crypto plays an important role in the remittances that Venezuelans send to their relatives abroad. According to Bloomberg, crypto transfers made up 9% of these funds in 2023.ย
Why This Matters
For Venezuelans, the block on Binance, X, and Signal represents a significant threat to their financial independence and ability to communicate freely.
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