HRF’s Weekly Financial Freedom Report #64

Nicaragua | Increases Financial Surveillance of NGOs

Nicaragua’s dictator, Daniel Ortega, intensified his crackdown on civil society with two new regulations that significantly increase the Ministry of the Interior’s (MINT) authority over national and foreign NGOs. The new regulations require NGOs to submit financial documentation, disclose their donors, and report all financial transactions. Using this information, authorities can now classify organizations as “threats,” conduct surprise inspections, impose sanctions, seize assets, and force closure. These regulations, framed as efforts to combat “digital terrorism,” intensify state surveillance and control and are a continuation of the regime’s systematic use of financial repression to silence dissent. This year alone, Ortega shut down 15 NGOs, and since 2021, he has closed over 5,600.

El Salvador | IMF Approves 1.4 Billion Loan With Further Restrictions

The International Monetary Fund (IMF) has officially approved its $1.4 billion loan to El Salvador while reinforcing even stricter limits on Bitcoin. This comes after last month’s legal reforms that made Bitcoin acceptance voluntary and prohibited its use for tax payments. The finalized deal, which grants an immediate $113 million disbursement, confines “government engagement in Bitcoin-related economic activities, as well as government transactions in and purchases of Bitcoin.” Despite these constraints, President Bukele has continued to flaunt Bitcoin purchases on social media, leaving many questions unanswered. Where does this bitcoin come from? Who controls the wallets? The lack of transparency remains.

Iraq | Issuing CBDC to Replace Cash

Iraq’s central bank governor, Ali Al-Allaq, announced that “the Iraqi central bank is now moving to create its own digital currency which will gradually replace paper notes.” Al-Allaq highlighted that this move aligns with broader “radical” changes in the global financial system. This news comes after Iraq banned all digital assets in 2017, citing concerns over financial crime and terrorism. Yet, its embrace of a CBDC over decentralized currencies like Bitcoin highlights a familiar pattern. China, Nigeria, and Russia have also pushed for CBDCs while restricting Bitcoin. Evidently, authoritarian regimes prefer financial control to remain in their own hands rather than risk empowering the public. 

Nigeria | Frees Tigran Gambaryan in Exchange for Greater Financial Surveillance 

In October 2024, Nigeria released Tigran Gambaryan, a former Binance executive accused of money laundering and contributing to the naira’s devaluation — though, in reality, he was a scapegoat for the regime’s economic mismanagement. According to The Rage, his release was secured through a deal with the US to help Nigeria prosecute “cryptocurrency and financial crimes.” Soon after, the two countries announced the creation of a “Bilateral Liaison Group on Illicit Finance and Cryptocurrencies” to expand Nigeria’s surveillance capabilities and “pursue cybercrime investigations and prosecutions.” Gambaryan, who described his prison conditions as “torture,” now faces an unsettling reality: his freedom may have come at the cost of strengthening an authoritarian regime notorious for its financial repression.

Turkey | X Blocks Accounts of Three Journalists at Regimes Request

X recently blocked the accounts of three Kurdish journalists in Turkey — Abdurrahman Gök, Oktay Candemir, and Ruşen Takva — following a Turkish government request citing concerns over “national security.” The journalists, known for exposing government corruption and reporting on Kurdish issues, now join a growing list of silenced Turkish reporters. This comes as Turkey intensifies its crackdown on independent media through arrests, legal pressure, and censorship. With 95% of media outlets in Turkey complying with the regime, social platforms remain one of the last places for free expression. Yet, as X and other platforms increasingly comply with authoritarian demands, access to independent information shrinks. This escalating repression underscores the need for censorship-resistant alternatives like nostr, where government pressure or corporate compliance cannot easily suppress speech.