Chivo said in a tweet that it would be discontinuing its scalping tool to curb Bitcoin’s developing speculative tendencies.
Users would be able to “scalp” Bitcoin pricing for a minute, allowing them to compare rates across multiple exchanges before committing to a final purchase.
El Salvador’s citizens made great use of the unique scalping feature, which permitted them to monitor Bitcoin prices before making a trade.
Chivo added on Twitter that the digital wallet’s software would no longer accept scalping since it fosters an environment of fraud in cryptocurrency trading. “Unfortunately, a significant portion of our users used it for scalping… This is legal but does not include the option of a fixed price,” the company said.
Handling Stricter trading laws and regulations
The wallet’s software was recently upgraded to restrict trades to one every three minutes to fight scalp. Additionally, users are dissatisfied with the difference between the price they sell Bitcoin and the price they receive when the transaction is complete.
Chivo has yet to demonstrate that the cost discrepancy experienced by users is due to price volatility during the three-minute delay. The difference in pricing is a fee charged by Chivo for allowing consumers to access its wallet and make cryptocurrency trades.
These updates are the most current program changes, which several faults and glitches have afflicted in the past. According to users, the program has been malfunctioning and presenting inaccurate user data.
Identity theft controversy
Critosal, a human rights organization based in El Salvador, has received 700 complaints stating that Chivo displays fictitious identities to users. Numerous consumers had claimed that their identification details were already in use when they attempted to create an account on Chivo.
Another monitoring organization in El Salvador, Tracoda, reported receiving 2000 reports of stolen identities due to the Chivo app.
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