Brazil Shocks Crypto Community with X Ban

Supreme Court Orders Immediate Suspension of X

In a dramatic development, Brazil shocks crypto community as Brazil’s Supreme Court has enacted a complete and immediate suspension of the social media platform X, formerly known as Twitter. This action comes as a result of X’s failure to appoint a legal representative within Brazil, a move that has stunned the cryptocurrency community and highlighted the pressing need for decentralized and censorship-resistant technologies.

Background of the Suspension

Brazil, with its upcoming municipal elections in October, requires tech platforms to designate legal representatives to handle governmental takedown notices. The government has accused X of not complying with this legal requirement amid increasing concerns about hate speech and disinformation on the platform.

X’s Response to the Ban

In response, X has claimed that its appointed legal representative in Brazil faced threats of arrest and had several bank accounts frozen. To protect its staff, X announced that it had voluntarily ceased operations within the country.

Elon Musk’s Reaction

On August 29, the day the suspension took effect, Elon Musk used his platform to criticize the judge responsible for the ban. He described Supreme Court judge Alexandre de Moraes as “an evil dictator pretending to be a judge” and urged users to use virtual private networks (VPNs) to bypass the ban.

Financial Penalties for Defying the Ban

According to G1 Globo, the Supreme Court has imposed a daily fine of 50,000 Brazilian real (approximately $9,000) on users who attempt to access X through VPNs, intensifying the impact of the suspension.

Historical Context

This incident is not Brazil’s first clash with technology platforms. Previously, WhatsApp, owned by Meta, was banned in the country for what the government deemed a “total disregard for Brazilian laws.”

Crypto Community’s Response

The crypto community has voiced strong support for Musk since the ban’s implementation. James Check, lead analyst at Glassnode, remarked on the situation, suggesting that the need for a decentralized, uncensorable digital asset has never been more evident.

“Isn’t this the perfect moment for a decentralized, uncensorable, global digital asset?” Check questioned. “Who’s working on this right now?”

Crypto enthusiast MrMoontastic.eth also expressed discontent, stating, “Brazil just cut itself off from the latest bull-run news. It’s a real shame.”

Scott Melker, known as “The Wolf of All Streets,” added, “Brazil’s move to ban X is extreme, but let’s not forget the U.S. trying to ban TikTok. Both are equally absurd.”


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