In line with a recent news published on govt.’s official media outlet named ‘Gaceta Oficial’, Venezuela’s new cryptocurrency bill, that establishes а legal framework for the crypto assets, formally came into force on 31st Jan.
The set of rules for miners, crypto entrepreneurs and regular traders were primarily ‘approved‘ by Constituent National Assembly — an alternate to the country’s Parliament, created earlier in 2017 — in Nov., last year.
The document titled “Constituent Decree on the Integral System of Crypto Assets” consists of 63 articles. It provides short definitions of key crypto terms, like crypto assets, blockchain, mining, cryptography, etc. It introduces the conception of a sovereign crypto assets — any currency issued in Venezuela and licensed by the govt.
The decree additionally establishes obligatory licenses for mining entities and crypto exchanges, and introduces fines for unlicensed activities.
The bill empowers the Sunacrip — a national crypto watchdog established last year in 2018 — to examine all crypto-related commercial business activities within the country. In line with Article 7, the body ought to monitor digital miners, exchanges and any another monetary services which may function as intermediaries within the Venezuelan crypto market.
Moreover, an identical article states that Sunacrip would be able to manage “creation, emission, transfer, commercialization and exchange” of all crypto actives in Venezuela.
The Spanish-language crypto outlet named ‘Criptonoticias’ added that this part of the document provides Sunacrip the flexibility to manage any crypto business platform within the ‘country‘, be it native or global, centralized or localised.
Additionally, the decree describes the registration procedures for crypto exchanges, wallets, and mining entities. Article 28 introduces many other different types of licenses for crypto startups, depending upon their mercantilism volumes, sorts of crypto assets they manage along with the other criteria. The Sunacrip can reportedly contemplate all applications for licenses and establish public fees for crypto corporations at its discretion.
In case any crypto-related company violates the licensing rules or fails to properly register with Sunacrip, its owners might be punished with up to at least one to three years of imprisonment, and penalised fifty to hundred sovereign crypto assets [around $3,000 USD to $6,000 USD].
The decree additionally states the Sunacrip will examine mining corporations and even confiscate the equipments, if the business doesn’t comply as per the new introduced rules. As soon as the hardware is confiscated, it may be disposed or used for “social activities,” the article 37 reads.
Petro which is Venezuelan oil-backed cryptocurrency ‘launched‘ back earlier in Oct. last year isn’t mentioned within the decree. However, its characteristics match with the outline of the sovereign crypto assets, as it was issued in Venezuela and thereby approved by the govt.
As reported earlier this month, Venezuela is presently facing a severe economic and political crisis. Juan Guaido — the self-proclaimed president of the country, supported by several native and international leaders — agrees with specialists who antecedently ‘wrote‘ that Petro is nothing but mere a “smoke curtain” to hide hyperinflation.