Since Venezuela President Nicolas Maduro ordered the arrest of Joselit Ramirez and the restructuring of the nation’s crypto regulatory agency, the crypto industry in that country has appeared to be suffering.

A day ago, the new leadership of the Superintendent of Crypto assets (SUNACRIP), Venezuela’s crypto regulator, said it is unsatisfied with how the crypto industry in the country is operating. So the agency ordered all crypto exchanges to cease operations.

Venezuela’s National Association of Cryptocurrencies (NAC) says SUNACRIP’s action is part of an ongoing anti-corruption investigation, which has so far led to the arrest of the former head of the regulatory body Joselit Ramirez and Minister of Energy and Petroleum Tareck el Aissami.

Asonacrip Opposes SUNACRIP’s Moves

However, Asonacrip President Jose Angel Alvarez believes that crypto companies in Venezuela are not to be blamed for the mess inside SUNACRIP. Instead, they should be allowed to continue operating.

Alvarez adds that he is collecting proposals from various crypto players in the country before delivering them to the new head of SUNACRIP, Anabel Pereira.

Prior to the crackdown on crypto exchanges, it was revealed that Venezuela’s crypto regulator had shut down several mining farms in various states in the country. According to Asonacrip, mining companies in the states of Lare, Bolivar, and Caraboro are the most affected.

Alvarez now wants SUNACRIP’s actions to be reviewed, noting that the majority of the mining farms have been operating in compliance with the law.

A New Era for Crypto in Venezuela?

The latest crackdown on the crypto industry contradicts President Maduro’s statement in previous years when he called for the promotion of crypto, referring to these digital assets as the tools to galvanize the country’s economy.

At that time, Maduro legalized cryptocurrencies and even instructed Ramirez to oversee the development of one, dubbed The Petro. In addition, a regulatory framework for mining farms and crypto exchanges was also established.

However, the corruption activities surrounding The Petro could be the reason Venezuela is no longer a crypto-friendly country. It is alleged that the former leaders of SUNACRIP secretly changed The Petro from being an auditable and oil-backed token to non-auditable with no oil backing.