CoinCoinX, a Venezuelan crypto exchange, has temporarily ceased operations due to the country’s current regulatory situation, leaving thousands of customers unable to access their funds. In a statement, the exchange suggested the company would be temporarily halting its operations while it awaits regulatory approval. The exchange blamed the high costs of maintaining the platform, infrastructure, development, security, and workforce for the move. However, some reports suggest the firm has been hit by a crackdown on Bitcoin mining, which has seen miners across the country surrender their rigs to police officers. The Venezuelan government-run PetroApp has also been reported having problems on its platform for almost a month, with customers claiming their funds are frozen and impossible to withdraw. Venezuela has been subject to a wider crypto crackdown in recent years, including a probe into alleged government corruption and the arrest of several leading officials. The state cryptocurrency regulator, SUNACRIP, has also come under investigation for misappropriation of state funds, leading to the dismissal and jailing of its former head, Joselit Ramírez. The Venezuelan government has previously sought to promote crypto-powered business, and state-owned firms have been actively using crypto as a payment tool in international trade. However, the government believes that SUNACRIP officials may have stolen up to $3 billion worth of crypto from these firms, amidst a deep political row with the US seeking to freeze trade via international economic sanctions.
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