Venezuela has been doing a crackdown on overseas digital services and due to this, it has blocked access to Coinbase and MercaDolar. Coinbase is a crypto exchange based in the US and MercaDolar is a fiat remittance platform.
This has been announced by the Venezuelan Inteligente on Tuesday i.e. September 08. It is an organization in the country that helps the citizens of the country to deviate internet blocks. It has not been revealed yet what is the reason behind this crackdown of overseas digital services. This seems quite shocking as there were not any kind of plans to block Coinbase and MercaDolar.
— VE sin Filtro (@vesinfiltro) September 9, 2020
Venezuela earlier also blocked access to many crypto exchanges
It has been revealed that the internet service providers of the country were also involved in blocking these platforms. Venezuela has earlier also blocked access to a lot of crypto exchanges with the same DNS blacklisting that they have used now. Earlier the country gained access to all those exchanges shortly after blocking them. However, nothing has not been revealed yet on this recent crackdown.
Andres E. Azpurua, director of Venezuela Inteligente has said that all the exchanges or platforms that are providing the exchange of the local currency to the international one are currently on the target.
Hyperinflation is going on for years in-country
Venezuela has been facing an economic crisis since really long as hyperinflation has been going on in the country for over many years now. The major reason behind this was falling oil prices due to which the complete socio-economic structure broke down. This because everything in the country was somewhere backed by oil only. In order to correct the economic situation, the country has also launched its own digital currency, Petro which was also backed by oil. Recently, Venezuela has also blocked two major virtual private networks however, the citizens were still having access to the online platforms.