Some Colombian customers have filed a lawsuit against Binance following the blockage of their accounts last year for alleged money laundering. Also, the breakthrough of BTC in El Salvador has gotten the interest of another country in South America to digital currencies, which the authorities hope will spark digital investment.
Blockade of Binance Accounts
Following charges of financial fraud, certain Colombian accounts opened on the Binance platform were closed last year. The claims arose after an examination by the Netherlands’ AML authority, FIOD (Fiscal Intelligence and Investigation Service), discovered that the wallets holding more than $1 million were related to financial activities.
Jairo Velez, one of those that was affected, stated;
“Since the 29th of September 2021, I’ve been banned.” I’ve already been without cash for five months. They took everything I had in my account, and the monies are being seized by the FIOD, as stated by Binance authorities.”
He and some other affected users have filed a lawsuit against the exchange. According to Velez, his attorney has requested the company’s compliance office for the funds to be released. However, there has been no response.
Andrea Torrente received the same treatment as Velez. The Binance platform alerted her the assets were frozen as a part of an inquiry by FIOD, with the help of a prosecutor in the Netherlands. Torrente has begun legal proceedings against the platform, informing Binance’s local agent in Colombia but receiving no comment.
The exchange’s reluctance to respond to users amid the incident is disconcerting. Torrente claims that:
“When you request for the FIOD’s freezing order, they instruct you to send an email using the Dutch authorities,” Binance responded similarly about six months back. They end our conversations as though the case is over.
Because the number of accounts impacted by the blockage is unknown, some affected users have formed a Telegram channel to promote publicity and collaborate effectively against Binance.
Panama Is Considering Cryptocurrency
A bill submitted in 2021 by Gabriel Silva, a member of the Panamanian congress, is gaining momentum in the business sector and financial community. Silva proposed the bill in 2021, which dwells on making Panama a crypto-friendly environment.
If implemented, the proposal will provide “constitutional, administrative, and financial clarity to the usage, possession, and issuing of digital currency in the state,” he stated.
He also stated that his proposal, which would be considered in the Parliament, will increase employment generation, attract IT companies, and improve employee accountability. The act attempts to provide digital currencies with legal justification but not make them a legal tender, as El Salvador has done. It stipulates that everyone can use crypto-assets for payment purposes in commercial and civil transactions.