Binance Tightens Controls on Venezuelan Card Transactions Amidst Fraud Concerns

Binance, a leading cryptocurrency exchange, has implemented stricter risk management measures for Venezuelan users purchasing digital assets with credit and debit cards. This action follows a recent surge in issues including high rejection rates, failed OTP verifications, credit limits, and the disappearance of card payment options for certain users.

The affected payment methods include virtual dollar cards issued in Panama, such as Zinli and Wally, as well as some Venezuelan domestic bank cards. According to Binance, these restrictions are a direct result of tightened risk control policies from payment processors and banking institutions. The platform has also observed a significant increase in customer support requests related to these issues.

These developments are occurring against a backdrop of arbitrage opportunities in the Venezuelan market, driven by the disparity between the official exchange rate and the secondary market price of USDT. Currently, the cost of purchasing US dollars through local banks stands at approximately 515 Bolivars, while the price of USDT on P2P markets hovers around 580 Bolivars.

Despite these limitations on direct bank card purchases, Binance has reported that its P2P market transactions in Venezuela have not experienced any significant disruptions.

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