The New Crypto Legal Framework of Venezuela Comes Into Force.
The new cryptocurrency bill of Venezuela has officially come into force on the 31st of January, which establishes а legal framework for the industry. The decree was published on Gaceta Official who is the government’s official media outlet.
The document is titled “Constituent Decree on the Integral System of Crypto Assets” which contains 63 articles. It gives the definitions of basic crypto terms in short, blockchain, like crypto assets, cryptography, mining, and others. It introduces the concept of a sovereign crypto asset.
This decree also established that mining entities and crypto exchanges must have licenses, and introduces fines for the unlicensed activities.
This new bill empowers Sunacrip, the national crypto security which was established in 2018 to inspect all of the crypto-related activities inside of the country. According to the Article 11, the body will be able to monitor exchanges, digital miners, and any other financial services that could serve to mediate in the crypto market of Venezuela.
Furthermore, the same article indicates that Sunacrip is going to control “creation, emission, transfer, commercialization and exchange” of all the crypto related actives within Venezuela.
Moreover, Article 28 introduced many different and new types of licenses for cryptocurrency startups, which is dependent on the types of crypto assets they manage, their trading volumes, and other criteria. The Sunacrip is reportedly will establish the public fees for cryptocurrency companies and will consider all applications for licenses.
If there is a violation of the licensing rules or if a crypto-related company fail to register with Sunacrip properly, the owners will be punished from one to up to three years in prison and fined $3,000 to $6,000 worth of sovereign crypto assets.
This new decree also stated that Sunacrip is going to inspect and even confiscate the equipment of the mining companies if they do not follow the newly introduced rules.
Apart from all this, the Venezuelan cryptocurrency, Petro, which was launched back in 2018 was not mentioned in the decree.