The Venezuelan government has imposed restrictions on accessing the world's largest cryptocurrency exchange Binance, amid a controversy surrounding the presidential election results.

What Happened: Binance confirmed the access issues through its Latin American-focused X account on Aug. 10. However, it reassured users that their funds are safe and promised to resolve it "in the best and quickest way possible."

The announcement triggered anxiety among users, with many contemplating the use of VPNs to circumvent the blockage.

However, it must be remembered that Binance earlier warned users against accessing the platform using a VPN as it might lead to an account suspension.

Venezuelans have increasingly gravitated towards cryptocurrencies over the past two years or so, owing to the severe devaluation of the local currency, the bolivar. The U.S. Dollar has strengthened more than 6x against the bolivar since August 2022.

According to blockchain analytics firm Chainalysis, purchasing of cryptocurrency using bolivars has risen whenever the national currency dips in value.

Why It Matters: Binance's censorship comes a day after President Nicolas Maduro enforced a 10-day ban on Elon Musk's social media platform X, accusing the tech tzar of stirring up hatred and civil discord following a contentious presidential election.

The situation in Venezuela has been escalating for some time. Maduro faced intense criticism following his declared victory in the election, with the opposition, led by candidate Edmundo González, disputing the results, claiming they secured a significant win.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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