{"id":23720,"date":"2017-05-29T19:14:04","date_gmt":"2017-05-29T19:14:04","guid":{"rendered":"http:\/\/ci027cfe66d0032697"},"modified":"2017-05-29T19:14:04","modified_gmt":"2017-05-29T19:14:04","slug":"bolivian-authorities-arrest-60-cryptocurrency-promoters","status":"publish","type":"post","link":"https:\/\/bitcoinmagazine.com\/culture\/bolivian-authorities-arrest-60-cryptocurrency-promoters","title":{"rendered":"Bolivian Authorities Arrest 60 \u2018Cryptocurrency Promoters\u2019"},"content":{"rendered":"
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Update, May 30th: While the use and circulation of virtual currencies is banned in Bolivia, it is now unclear whether that’s what the suspects are really charged with. Reports as well as local sources suggest that they may instead be charged with running pyramid schemes that use bitcoin. Alternatively, the suspects may be charged with both running pyramid schemes as well as using bitcoin. <\/em><\/p>\n

The Bolivian Financial System Supervision Authority (ASFI) arrested 60 \u201ccryptocurrency promoters\u201d last week. According to a statement<\/a> published by the ASFI, in which it refers to bitcoin and several altcoins, the arrestees were carrying out \u201ctraining activities\u201d relating to investments that have \u201ccharacteristics of multilevel schemes.\u201d The agency also indicated it will track down Bolivians promoting Bitcoin online.<\/p>\n

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\u201cThe only thing these people are doing is taking advantage of the population and deceiving the people to appropriate their money,\u201d ASFI director Lenny Valdivia Bautista said in the statement.<\/p>\n<\/blockquote>\n

Since 2014, the Latin American country and its central bank consider bitcoin as well as all altcoins to be pyramid schemes. As such, it was the first country in the world that completely prohibited<\/a> use of \u201cany kind of currency that is not issued and controlled by a government or an authorized entity.\u201d<\/p>\n

This ban forms the basis for this week\u2019s arrests. While there are currently few specifics available, news reports suggest the Bolivians were distributing brochures promoting bitcoin, and possibly selling bitcoin online. <\/p>\n

“We have confiscated brochures relating to business schemes that go around giving trainings and making business plans in relation to virtual currencies that are operating abroad,\u201d Valdivia Bautista stated. \u201cThe Bolivian population should not participate in closed [cryptocurrency] groups through WhatsApp. The only thing they are doing is taking advantage of the population, deceiving the people to appropriate their money.\u201d<\/p>\n

Speaking to CoinTelegraph<\/a> half a year ago, the creator of the Bolivian Bitcoin Facebook group explained that Bolivian Bitcoin users maintain connections through social media. Because cryptocurrencies are banned in the Latin American country, trades are organised through small-scale discussion groups, and the exchange of bitcoins often happens in person.<\/p>\n

Apparently, the Bolivian authorities have taken note. According to hoybolivia.com<\/a>, the ASFI said that it will continue to track down and arrest anyone that promotes or sells cryptocurrency on social media or other websites. Bolivians are also asked to \u201ctake care of their savings by reporting [cryptocurrency related] activities\u201d by calling a special hotline or contacting the country\u2019s \u201cSpecial Forces Against Felony.\u201d<\/p>\n

“It is important to urge the population to report these cases in which people aim to take advantage of people and their families’ savings,” said Valdivia Bautista.<\/p>\n

Bolivia is not the first Latin American country that is cracking down on Bitcoin users. In February<\/a> of this year, Venezuelan authorities arrested eight Bitcoin miners. In addition to that, Venezuela\u2019s main exchange \u2014 Surbitcoin \u2014 had to halt operations as the company\u2019s bank closed their account.<\/p>\n

Bitcoin Magazine reached out to local authorities but received no response at time of publication.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Update, May 30th: While the use and circulation of virtual currencies is banned in Bolivia, it is now unclear whether that’s what the suspects are really charged with. Reports as well as local sources suggest that they may instead be charged with running pyramid schemes that use bitcoin. Alternatively, the suspects may be charged with […]<\/p>\n","protected":false},"author":2509,"featured_media":23721,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[33],"tags":[3563],"class_list":{"0":"post-23720","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-culture","8":"tag-bolivia"},"author_data":{"id":2509,"name":"Aaron van Wirdum","nicename":"aaron-van-wirdum","avatar_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/12\/aaron-van-wirdum-96x96.jpg"},"featured_image_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/11\/bolivian-authorities-arrest-60-cryptocurrency-promoters.jpg","_links":{"self":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/23720","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/users\/2509"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/comments?post=23720"}],"version-history":[{"count":0,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/23720\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media\/23721"}],"wp:attachment":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media?parent=23720"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/categories?post=23720"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/tags?post=23720"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}