The South American country Venezuela set a new record for amounts traded in bitcoin (BTC) last week. It happened as new laws came into place and due to the ongoing political turmoil.

Venezuela’s bitcoin traded set a new record

The country is not unfamiliar when it comes to cryptocurrencies. A few months ago, they launched their national crypto “Petro” to fight inflation in the country. A story covered by Toshi Times. However, many industry experts argue that Petro is a scam.

Meanwhile, bitcoin becomes more adopted by the country. Venezuela’s Walmart, Traki, have started to accept bitcoin as payment. There are 49 Traki stores located throughout Venezuela, and it makes sense that the store would begin to accept digital currencies as the country finds itself in the midst of a financial crisis.

The inhabitants try to do what they can to survive the country’s financial issues. Venezuela’s currency, the sovereign bolivar (VES), suffers from rampant hyperinflation. Due to capital controls and a shortage of foreign currency, it leaves residents with only one choice. Where they transfer their money to leaves trails as the bitcoin volume in the country reaches new highs, according to Coin.dance. Almost 17.1 billion VES changed hands on Localbitcoins last week and broke the record, which occurred the week before, by almost 1.2 billion VES.

The new law might make it harder to buy bitcoin in Venezuela

The country’s authorities see that cryptocurrencies get more attention by the residents. A new law will regulate the sector and will control buying, selling and let the law enforcement confiscate mining equipment. The new policies give the regulators power over local cryptocurrency exchanges and other official blockchain related businesses.

According to Criptonoticias.com, the legislation was approved and signed by the president of the ANC, Diosdado Cabello. One of the paragraphs that draws attention is Article 42, where inhabitants can get fines for carrying out any activity related to cryptos, including mining without a license. It stated:

“Those who operate or perform any type of activity related to the constitution, issuance, organization, operation and use of (Petro) or cryptocurrencies, including mining, without the proper authorization of the governing body and in breach of the other formalities required by this Constituent Decree, they will be sanctioned with a fine equivalent to 100 to 300 (Petro).”

Among those in line for such sanctions could be Juan Guaido, the self-proclaimed president of Venezuela. Some suspect that he has considerable Bitcoin holdings. Authorities moved to quarantine Guaido’s fiat bank accounts last week.

Image Source: “Flickr”