Venezuela Brings Legal Framework For Cryptocurrency Use In the Country

The Venezuelan government, led by the recently re-elected president Nicolas Maduro, has published a new decree in the country’s official gazette establishing a legal framework for cryptocurrencies.

The new decree comprises 63 articles comprising the entire of cryptocurrency usage as well as the necessary regulatory measures involved. It also includes all the rules relating to the purchase, sale, distribution, and exchange of crypto assets and its related products. The new decree is dubbed as the Constituent Decree on the Integral System of Crypto Assets”.

Last week on Jan. 31st, Ramirez Joselit, the Superintendent of Sunacrip, Venezuela’s Superintendency of Crypto Assets and Related Activities, tweeted: “Today the constituent decree that will govern the operation of the Integral System of Crypto Assets of Venezuela was published in Official Gazette Number 41.575.”

The entire decree of 63 articles is split into six sections. The first section (Article 1-5) comprises of general information while defining crypto assets, blockchain, crypto mining and related terms. The second section (Article 6-28) explains the structure of the Integral System of Crypto Assets”.

The third section is related to rules defining the new registry systems. Similarly, the fourth section details the audit and inspection procedures involved for different crypto companies and individuals involved in crypto-related activities like mining, etc. The fifth section discusses penalties for non-compliance while the sixth section describes different administrative procedures.

The official gazette reads: The purpose of this constituent decree is to create and define the regulatory framework applicable to the Integral System of Crypto Assets”.

The decree also notes that Sunacrip shall act as the major regulatory body governing and monitoring all crypto-related activities taking place in Venezuela. It states: “[Sunacrip] will exercise the broadest powers within the legal and constitutional framework, to regulate the creation, issuance, organization, operation and use of crypto assets, and consequently, to regulate the operation of the exchange houses and other crypto asset financial services, as well as activities associated with digital mining.”

In case of non-compliance, Sunacrip can initiate strict measures to prevent any violations. The decree also mentions heavy penalties on companies operating without a proper license. It states: “Those who operate or perform any type of activity related to the constitution, issuance, organization, operation and use of sovereign crypto assets or [other] crypto assets, including mining, without the due authorization of the governing body and in breach of the other formalities required by this constituent decree, will be sanctioned with a fine equivalent to 100 to 300 sovereign crypto assets.”