Venezuela has introduced a new crypto regulatory framework for businesses working with crypto assets, according to Venezuela’s Ministry of Popular Power for Communication and Information (MIPPCI) official gazette published on January 31.
The official gazette titled the ‘Constituent Decree on the Integral System of Crypto Assets.’ The publication has initiated a new regulatory framework that will compel businesses working with crypto assets, including exchanges and crypto miners to register with SUNACRIP, the country’s superintendency of crypto-related activities.
Sunacrip will establish the registration requirements and processes, and subsequently inform affected businesses, the Gazette states. Crypto-related firms who are not registering will face a fine equivalent to 100–300 Petros, which is the country’s national cryptocurrency.
According to the Gazette, which was roughly translated stated –
“To authorize to the organizations dedicated to the interchange of the crypto activities, of the digital wallets, the currencies used in the Houses of Interchange, of the activities of digital mining, constituted in the national territory, that wish to operate abroad in the foreign land or those constituted that wish to operate in the national territory.”
As an effect of the decree, the regulator is now enhanced to the highest crypto authority in Venezuela. The decree enlists 63 articles, including definitions of crypto terms, Sunacrip’s remit, business registration, and audit requirements, fines for non-compliance or criminal act, and more.
Besides, the decree outlines the registration procedures for crypto exchanges, wallets, and mining entities. Article 28 includes various types of licenses for crypto startups (firms), depending on their trading volumes, types of crypto assets and other standards.
Crypto firms found non-compliant with the new rules will face imprisonment of one to three years and a penalty equivalent to 50–100 Petros. Mining rigs can also be seized with the agency retaining the equipment.
Venezuela is prominently one of the nations to have launched a national cryptocurrency called ‘PETRO.’ The U.S. President Donald Trump ordered sanctions against Petro in March 2018, soon after the currency was launched.
Earlier in January, Venezuela had issued a complaint against the U.S with the World Trade Organization (WTO), the country criticized the US sanctions, as it was violating WTO’s rules and regulations.
Nicolas Maduro, the President of Venezuela, has made attempts aimed at pushing the adoption of the oil-backed Petro, both at home and overseas.
Venezuela has indeed taken great measures by imposing crypto-related regulatory framework; as there are a number of rising incidents like hacking, money laundering, crimes related to crypto across the globe.
The crypto-regulations will bring in more rules for crypto exchanges and miners to address crypto-related crimes and incidents.