The new crypto bill of Venezuela, which establishes a legal framework for the industry, has officially come into force on the last day of January. The decree has been published in Gaceta Oficial, which is the official outlet media of the government.
The set of rules approved in 2018 by Constituent National Assembly
The new crypto bill for crypto entrepreneurs, miners, as well as regular traders was initially adopted by Constituent National Assembly, in November last year, which is an alternative to the Parliament of the country, created in 2017.
The crypto bill is titled “Constituent Decree on the Integral System of Crypto Assets,” and it contains 63 articles. Moreover, it gives short definitions of key crypto terms like crypto assets, cryptography, the blockchain, mining, as well as others. It even introduces the concept of a sovereign crypto asset – any currency which is issued in Venezuela and authorized by the government.
The decree has also established necessary licenses for mining entities, as well as crypto exchanges, and it introduces fines for unlicensed activities.
This crypto bill also empowers the Sunacrip, which is a national crypto watchdog established last year, to inspect the entirety of commercial activities related to cryptocurrency in the country. According to Article 11, the body has to monitor digital miners, as well as exchanges or some other financial services which might serve as intermediaries in the Venezuelan crypto market.
Sunacrip to control creation emission, transfer, and commercialization
Furthermore, that same article states that crypto bill Sunacrip is going to have the ability to control creation emission, transfer, as well as commercialization and exchange of all of the crypto activities within Venezuela.
Criptonoticias, which is a Spanish-language crypto outlet, reported that this part of the document actually make Sunacrip able of controlling any commercial crypto platform in the country, no matter if it is a local or international, decentralized or centralized.
Moreover, the decree describes the registration procedures for crypto exchanges, mining entities, as well as wallets. Article 28 introduced a few types of licenses for the crypto startups, which depends on their trading volumes, types of cryptocurrency assets they manage, as well as other criteria. The crypto bill is going to consider all of the applications for licenses and even establish public fees for the cryptocurrency companies at its discretion.
In case any company which is related to crypto violates the licensing rules or fails to register with Sunacrip properly, its owners may be punished with up to one to three years in prison, and also fined 50 to 100 sovereign crypto assets, which is $3,000 to $6,000.
Petro is not mentioned in the decree
The decree has also stated that the Sunacrip may inspect mining companies, or even to take over the equipment if the business does not comply with the newly introduced rules. As soon as the hardware is seized, it may be disposed of or also used for social purposes, according to Article 37.
Petro, which is the oil-backed crypto of Venezuela, launched in October of last year, is not mentioned in the decree at all. But, its characteristics match with the description of the sovereign cryptocurrency asset, as it has been issued in Venezuela, as well as approved by the government.
As it has been reported earlier in February, Venezuela now faces a severe economic, as well as political crisis. The self-proclaimed president of Venezuela, named Juan Guaido, supported by a lot of international and local leaders, agrees with the experts who previously wrote that Petro is actually nothing but a smoke curtain to cover up the hyperinflation.