The BTC trading volumes on several exchanges in Venezuela hit record highs as the country begins regulating cryptocurrency. The Bitcoin trading volumes on peer-to-peer trading platforms such as LocalBitcoins and Paxful have significantly increased over the past few days.
BTC trading volumes in Venezuela rising
Earlier this month, the Venezuelan Ministry of Popular Power for Communication and Information (MIPPCI) published an official gazette introducing a new regulatory framework for businesses working with crypto assets. The National Superintendency of Crypto Assets and Related Activities (Sunacrip) has been tasked to regulate all crypto activities in the country. The regulator has set a monthly transaction limit for crypto traders in the country and will be collecting commissions of up to 15 percent of the transaction amount.
Following the introduction of the new regulatory framework, P2P crypto platforms in the country recorded new highs in BTC transaction volumes. According to a tweet by Kevin Rooke, LocalBitcoins has experienced a high BTC trading volume over the past few days. The BTC traded on the platform reached 2,485 coins in the week ending Feb. 9, up from 2,004 coins the previous week.
Venezuela's P2P Bitcoin market does 157x the volume of their largest stock exchange.
Venezuela's top stock exchange did $8,117 of trading volume on Friday.
Not a typo. $8,117 USD.
Venezuelans traded an avg of $1.28M of Bitcoin on LocalBitcoins each day this week. pic.twitter.com/Uu4Ed2B9V3
— Kevin Rooke (@kerooke) February 11, 2019
Paxful, another P2P platform, is reported to have experienced similar growth. The exchange revealed yesterday, February 12, that BTC trading volume for Venezuela surged by 74 percent last year compared to 2017. Amongst the 40,309 Paxful users in Latin America, over 8,000 of them are in Venezuela, which shows the strength of cryptocurrencies in the country.
Venezuelans prefer Bitcoin to Petro
The statistics showing that BTC trading volume in Venezuela has increased over the past few days implies that Bitcoin is preferred to Petro, the official cryptocurrency of the country. The Venezuelan government launched the Petro as a means of circumventing sanctions imposed on them by the United States and SWIFT. However, its residents have increasingly turned to Bitcoin as a means of protecting their assets against the hyper-inflationary conditions prevalent in the country.