Venezuela has been in the news for a special reason. The Government of Venezuela took some strong measures against two cryptocurrency exchanges and decided to shut them down. These exchanges initially facilitated the users to convert into different digital currencies and they also allowed the users to send the remittances abroad.
The Government has primarily taken action against those exchanges that have spread fall news related to exchange rates. The names of these exchanges are Rapidcambio and Airtm. However, the actions taken by the Government will only affect the operation of these exchanges in Venezuela because they have a number of different operation mechanisms.
They have social media accounts and they have international bank accounts in different countries. What these exchanges do is that they receive the cash in these international bank accounts and they convert the cash at an unrealistic rate.
Rapidcambio decided to come up with some explanation in this regard and they posted on their site that they put in their best efforts to operate in an honest manner. However, there is no smoke without fire. The Government always takes action after a fair amount of investigation and if they decided to take action against this exchange, then it has to be in the best interest of the public.
The problem is that Rapidcambio has been unable to give a valid justification for the high exchange rates. This is why the public should make sure that they cooperate with the Government. At the moment the wise move is to invest trust in those exchanges only that have received acceptance from the Government.
We all need to understand that digital currency is a new concept comparatively and investing in exchanges that have a shady past can turn out to be a disastrous move at the end of the day.
The best move will be to invest in reputed exchanges in reputed digital currency exchanges in Venezuela. This way the locals will not have to worry about losses coming their way. It is also important to investigate an exchange before registering. These days it is not quite a problem to find information about an exchange online.
If a credible website and reliable information is not available, then it is a red flag alert and people need to be on their guard against such exchanges. The action taken by the Venezuelan Government is an eye opener for many and this move will now snub many other shady exchanges.