Exchange El Dorado P2P ceases its operations in Venezuela

The company allows the exchange of stablecoins for local currencies in the region, a necessity in economies with high inflation.

Guillermo Goncalvez, CEO of El Dorado, denied that they wanted to "promote speculation on the dollar".

Venezuelan authorities have detained people for "artificially inflating" the dollar.

Guillermo Goncalvez, co-founder and CEO of the P2P exchange El Dorado, announced the suspension of operations in Venezuela through a video released yesterday, Saturday.

“El Dorado will stop operating in Venezuela immediately,” he stated, while expressing his regret for any negative impact generated by the platform.

“First of all, I am deeply sorry, as in no way have our actions been aimed at promoting speculation on the parallel dollar in Venezuela,” Goncalvez assured, who also apologized and took responsibility for any harm caused.

The businessman emphasized that the only official exchange rate of the dollar in the country is the one established by the Central Bank of Venezuela.

Government scrutiny

The decision of El Dorado comes in a context of increased control by Venezuelan authorities over the currency market.

Last week, they detained 20 people who managed Instagram accounts dedicated to posting the value of the parallel dollar, which, as of May 22, was quoted at 133 bolivars per dollar, while the official rate from the BCV was at 94 bolivars, marking a difference of 41%.

The Venezuelan Public Ministry charged the detainees with the crimes of terrorism, money laundering, improper fundraising, misleading offers, and association.

An uncertain future for exchanges in Venezuela

These measures reflect the increasing pressure on exchanges like El Dorado, which operate in an environment where rampant inflation and economic restrictions are soaring .

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