Venezuela

**Requirement:** Any natural or legal person intending to carry out activities related to crypto assets in Venezuela, including providing services that would encompass custody, must register with SUNACRIP and obtain the corresponding license. The law does not define a separate "custody license" but rather general licenses for "providers of cryptoactive services."

**Decreto Constituyente sobre el Sistema Criptoactivo Venezolano (Constituent Decree on the Venezuelan Cryptoactive System)**, published in Gaceta Oficial Extraordinaria N° 6.370 on April 9, 2018.

**Article 3** broadly defines "cryptoactive activities" and establishes SUNACRIP as the governing body.

**Article 5** mandates that the exercise of any cryptoactive activity requires prior authorization from SUNACRIP.

**Article 11** discusses the powers of SUNACRIP to regulate, supervise, and authorize cryptoactive activities and providers.

**SUNACRIP Resolutions:** Subsequent resolutions detail the requirements for different types of crypto service providers. For instance, **Resolution N° 006-2020** (Normas que regulan la Prestación de Servicios de Intercambio de Criptoactivos y Casas de Intercambio de Criptoactivos, published in Gaceta Oficial N° 41.905 on June 18, 2020) outlines requirements for crypto exchange houses, which inherently perform custody functions. These requirements typically include:

Legal entity establishment and registration in Venezuela.

Minimum capital requirements (which vary by license type, e.g., for exchange houses).

Compliance with Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regulations.

Fit and proper requirements for directors and management.

**URL (Decreto Constituyente):** Often found on legal information sites, as official Gaceta Oficial links can be unstable. An example:

VLEX - Decreto Constituyente sobre el Sistema Criptoactivo Venezolano (Subscription or trial access may be needed, but widely cited as the source).

**URL (SUNACRIP Resolutions):** SUNACRIP's website can be inconsistent, but resolutions are usually published in the Gaceta Oficial.

SUNACRIP Official Website (Check the "Normativa" or "Gaceta Oficial" sections if available, though direct links to specific resolutions are often found on third-party legal sites).

**Segregation of Client Assets Rules:**

**Specific Rules:** There are **no explicit, detailed regulations** mandating the segregation of client digital assets from the custodian's proprietary assets.

**Implicit Expectation:** While not explicitly codified with the granularity seen in traditional financial regulations (e.g., trust law or securities segregation rules), general principles of sound financial management and client protection are implicitly expected from licensed entities. Requirements for transparency, internal controls, and AML/CFT in resolutions like 006-2020 for exchange houses *imply* a need to distinguish client funds, but without specific mandates for separate wallets or insolvency remote structures.

**Specific Requirements:** There are **no explicit requirements** for custodians to obtain specific insurance or bonding for client digital assets against theft, loss, or operational failures.

**General Capital:** Licensed entities, particularly exchange houses, are subject to minimum capital requirements, but these serve as operational guarantees rather than specific insurance for client crypto assets.

**Specific Mandates:** Venezuelan regulations **do not contain explicit mandates** for the use of cold storage (offline storage) for digital assets.

**Implied Best Practice:** While not mandated, the use of secure storage solutions, including cold storage, would be considered an industry best practice and part of demonstrating "technical and operational capabilities" as required for licensing. However, the regulations do not prescribe the specific technical methods.

**Definition:** The term "qualified custodian," as understood in US securities law (e.g., under the Advisers Act), is **not explicitly defined** within Venezuelan crypto asset legislation.

**Venezuelan Context:** In Venezuela, any entity authorized and licensed by SUNACRIP to provide services involving the safekeeping or management of crypto assets would be the de facto "qualified" provider, based solely on having obtained the necessary authorization from the national regulator. The qualification stems from the licensing process itself rather than a separate definition of "qualified custodian."

As of the last review, there is **no specific, publicly known pending legislation solely focused on detailed crypto asset custody rules** in Venezuela.

The regulatory environment, primarily driven by SUNACRIP, can evolve through new resolutions or amendments to existing ones. Given the broader focus on controlling crypto activities and leveraging them for national economic goals, any new regulations are more likely to target the scope of activities, financial stability, or AML/CFT compliance rather than specific operational custody requirements.

**Superintendencia Nacional de Criptoactivos y Actividades Conexas (SUNACRIP)**: This is the sole authority responsible for regulating, supervising, and controlling all activities related to crypto assets in Venezuela.

**Ley Constitucional del Sistema Criptoactivo Venezolano** (Constitutional Law of the Venezuelan Cryptoasset System)

**Date:** Gaceta Oficial Extraordinaria N° 6.401, January 30, 2019.

**Purpose:** Establishes the legal framework for the creation, issuance, use, and commercialization of sovereign crypto assets (like the Petro) and other virtual assets within Venezuela. It grants SUNACRIP broad powers.

**Resolución 009-2020: Normativa que Regula el Sistema Integral de Criptoactivos** (Regulations Governing the Comprehensive Cryptoasset System)

**Date:** Gaceta Oficial N° 41.874, May 7, 2020.

**Purpose:** This is the most crucial implementing regulation, detailing the requirements for entities engaging in crypto asset activities, including licensing, operational requirements, and supervision.

**Resolución 007-2020: Normativa sobre Prevención, Control y Fiscalización de Legitimación de Capitales y Financiamiento al Terrorismo en Operaciones con Criptoactivos** (Norms on Prevention, Control and Fiscalization of Money Laundering and Terrorism Financing in Cryptoasset Operations)

**Date:** Gaceta Oficial N° 41.834, March 4, 2020.

**Purpose:** Specifies the Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) obligations for crypto asset service providers.

**Exchanges (Plataformas de Intercambio de Criptoactivos):** Entities operating platforms for buying, selling, or trading crypto assets (fiat-to-crypto, crypto-to-crypto, crypto-to-fiat) are explicitly required to obtain a license. This covers spot exchanges, derivatives exchanges, and similar trading venues.

**Custody Providers (Servicios de Custodia de Criptoactivos / Carteras Custodiadas):** Entities offering services for safeguarding crypto assets on behalf of third parties (i.e., holding private keys) must obtain a specific license for custody services.

**Payment Processors (Servicios de Procesamiento de Pagos con Criptoactivos):** While not always explicitly named "payment processor" as a standalone license, activities involving the facilitation of payments using crypto assets would typically fall under:

**Exchange license:** If the service involves conversion between crypto and fiat or different crypto assets for payment purposes.

**Wallet/Custody license:** If the service involves managing custodial wallets for users to make and receive payments.

**Servicios de Gestión de Criptoactivos (Cryptoasset Management Services):** This is a broader category that could encompass various related financial services, including facilitating payments if they involve managing user crypto assets.

**Other Activities:** The law also requires licenses for crypto mining, issuance of crypto assets, transfer services, and other related activities.

Resolution 009-2020 establishes significant capital requirements, denominated in **Petro (PTR)**, the Venezuelan sovereign crypto asset. The exact amount varies by the type of activity.

**Example:** For "Cryptoasset Exchange Platforms," the minimum paid-in capital can be 50,000 Petro (PTR) or more, along with a guarantee of 10,000 Petro.

**AML/KYC Requirements (as per Resolución 007-2020):**

**Customer Due Diligence (CDD):** Implement robust Know Your Customer (KYC) procedures, including identity verification for natural and legal persons.

**Record Keeping:** Maintain records of all transactions and customer information for a specified period.

**Transaction Monitoring:** Implement systems to monitor transactions for suspicious activity.

**Suspicious Activity Reports (SARs):** Report suspicious transactions to the National Financial Intelligence Unit (UNIF) of Venezuela.

**Compliance Officer:** Appoint a dedicated AML/CTF Compliance Officer.

**Risk Assessment:** Conduct regular risk assessments to identify and mitigate money laundering and terrorist financing risks.

**Training:** Provide ongoing AML/CTF training for employees.

Applicants must be a **Venezuelan legal entity** (e.g., a company incorporated in Venezuela).

They must have a **physical presence** in Venezuela (office, operational infrastructure).

They must have a **legal representative** in Venezuela.

Shareholders, directors, and key personnel must meet "fit and proper" criteria.

Provide evidence of robust technological infrastructure capable of ensuring the security, integrity, and confidentiality of operations and customer data.

Submit security audits, business continuity plans, and disaster recovery plans.

A comprehensive business plan outlining the proposed activities, operational procedures, organizational structure, and financial projections.

Applicants are required to pay application fees and annual supervision fees to SUNACRIP.

**Pre-Application Inquiry (Optional):** Initial consultations with SUNACRIP to clarify requirements.

**Company Formation:** Establish a legal entity in Venezuela.

**Documentation Gathering:** Prepare all required corporate documents, shareholder information, identification documents for directors and beneficial owners, proof of capital, business plan, AML/CTF manual, technology audit reports, etc.

**Application Submission:** Submit the complete application package to SUNACRIP, along with payment of the application fees.

**Review and Due Diligence:** SUNACRIP reviews the application, conducts due diligence on the entity, its personnel, and its systems. This may involve interviews, requests for additional information, and site visits.

**Approval/Denial:** If all requirements are met, SUNACRIP grants the corresponding license. If not, the application may be denied, or further modifications requested.

**Ongoing Compliance:** Once licensed, entities are subject to continuous supervision by SUNACRIP, including regular reporting, audits, and adherence to all regulatory updates.

**Political and Economic Instability:** Venezuela's political and economic landscape is highly volatile, which introduces significant risk and uncertainty for businesses, including those in the crypto sector.

**US Sanctions:** The Venezuelan government and many state-owned entities are subject to extensive US sanctions. Engaging in transactions with sanctioned entities or individuals, even via crypto assets, could expose foreign businesses to secondary sanctions risks.

**Petro Volatility and Acceptance:** The Petro itself has seen limited widespread adoption outside of government-mandated contexts and its value has been highly volatile and opaque.

**Evolving Regulations:** The crypto regulatory environment in Venezuela, like globally, is subject to frequent changes and updates.

You would typically search for "Gaceta Oficial Extraordinaria N° 6.401 del 30 de enero de 2019" on a legal database or government gazette archive. Example of a common legal portal that hosts it:

https://pandectas.com.ve/leyes/ley-constitucional-del-sistema-criptoactivo-venezolano/ (Note: This is a legal information portal, not the official government gazette site, but often reliable for text)

Search for "Gaceta Oficial N° 41.874 del 7 de mayo de 2020 Resolución 009-2020 SUNACRIP". Example:

https://acven.org/wp-content/uploads/2020/05/GO_41874_20200507.pdf (Direct PDF link often found via professional services or news archives)

Search for "Gaceta Oficial N° 41.834 del 4 de marzo de 2020 Resolución 007-2020 SUNACRIP". Example:

**Past:** Heavily influenced by the creation and promotion of its national cryptocurrency, the Petro, which aimed to circumvent sanctions and stabilize the economy. This led to a very centralized and controlled approach.

**Present (Post-Petro):** While the Petro is gone, the regulatory body and the legal framework for licensing and overseeing private crypto activities (mining, exchanges, trading) persist. The focus is on regulating the industry, ensuring compliance with state requirements, and preventing illicit activities. It's not a ban on crypto, but it's far from a free-market approach.

**Role:** This is the primary and most powerful regulatory body for virtual assets in Venezuela. It is responsible for regulating, supervising, authorizing, and overseeing all activities related to crypto assets, including mining, trading, and exchanges. SUNACRIP establishes the legal framework, issues licenses, sets fees, and monitors compliance.

**Website:** While SUNACRIP has had a website (e.g., sunacrip.gob.ve), its accessibility and content can sometimes be intermittent or limited due to the political and economic situation. Official communications often occur via the Gaceta Oficial.

**Banco Central de Venezuela (BCV - Central Bank of Venezuela):**

**Role:** While SUNACRIP handles direct crypto regulation, the BCV may play a role in broader financial stability, payment systems, and any potential future digital currency initiatives. Historically, it was involved in setting Petro exchange rates.

**Website:** Banco Central de Venezuela

**Other Relevant Bodies (for AML/CFT):**

**Unidad Nacional de Inteligencia Financiera (UNIF - National Financial Intelligence Unit):** Part of the broader anti-money laundering (AML) framework, it would receive suspicious activity reports related to crypto transactions.

**Constituent Decree on the Sovereign Crypto-Asset System and the Petro (Decreto Constituyente sobre el Sistema Criptoactivo Soberano y el Petro)**

**Date:** January 2018 (Original decree that established the Petro and the initial framework).

**Status:** Largely superseded by subsequent laws and resolutions, especially with the official **shutdown of the Petro on January 15, 2024.** While historical, it laid the groundwork for state involvement in crypto.

**Constitutional Law of the Venezuelan Crypto-Asset System (Ley Constitucional del Sistema Criptoactivo de Venezuela)**

**Date:** January 30, 2019 (Published in Official Gazette No. 41,575).

**Status:** This is the **primary active legal framework** governing crypto assets in Venezuela.

Establishes SUNACRIP and grants it broad powers to regulate all crypto-asset related activities.

Requires mandatory registration and licensing for all individuals and entities involved in crypto-asset mining, exchange, or any related services.

Mandates the use of the national crypto-asset system (even after Petro's demise, the system for regulating private assets remains).

Imposes a "sovereign crypto-asset activity tax" (Impuesto a las Grandes Transacciones Financieras - IGTF, which applies to transactions in foreign currency and crypto assets).

**Reference:** Gaceta Oficial N° 41.575 (January 30, 2019) - Searchable in official gazette archives, e.g., via Gaceta Oficial de la República Bolivariana de Venezuela (though direct links to specific gazettes can be ephemeral).

Throughout the years, SUNACRIP has issued numerous resolutions detailing specific requirements for miners, exchanges, wallet providers, and other service providers (e.g., registration processes, fee structures, operational guidelines, AML/CFT compliance). These resolutions operationalize the Constitutional Law. Finding specific URLs for all of them is challenging as they are often published in the Gaceta Oficial over time.

**Legal but Highly Regulated:** Crypto trading is permitted in Venezuela, but it is not a free-for-all. All entities and individuals engaged in crypto trading services, including exchanges (both centralized and peer-to-peer platforms operating within Venezuela's jurisdiction), must be **licensed and registered with SUNACRIP.**

**Mandatory Registration:** Miners, traders, exchange operators, and anyone offering crypto-related services must register with SUNACRIP.

**AML/CFT Compliance:** Licensed entities are subject to Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) regulations, requiring customer due diligence (KYC), transaction monitoring, and suspicious activity reporting.

**Fees and Taxes:** Crypto transactions, particularly those involving foreign currency or virtual assets, are subject to the **Impuesto a las Grandes Transacciones Financieras (IGTF)**, a tax on large financial transactions, which can range from 3% to 20% depending on the type of transaction and official decrees. SUNACRIP also imposes various administrative fees for licenses and permits.

**State Oversight:** The regulatory framework grants the state significant oversight over crypto activities, allowing it to intervene, audit, and impose sanctions.

**Note:** The value of Petro is linked to the price of a basket of commodities, but its real-world valuation and liquidity can be complex and volatile.

**Adopted:** While Venezuela does not explicitly use the term "Travel Rule" in its legislation, the principles underlying the FATF Travel Rule – primarily the identification of both the originator and beneficiary of a virtual asset transfer – are incorporated into its broader AML/CFT framework for cryptoassets.

**Spirit vs. Letter:** The Venezuelan framework emphasizes robust Know Your Customer (KYC) and Customer Due Diligence (CDD) for all users of regulated crypto services, and mandates reporting of suspicious transactions. This addresses the *spirit* of identifying parties to transactions, but the *specific mechanism* of inter-VASP information exchange for all transactions above a threshold is less clearly articulated compared to other jurisdictions directly adopting the FATF guidance.

**FATF Status:** Venezuela has been under increased monitoring by the FATF due to strategic deficiencies in its AML/CFT regime. While it has made commitments to address these deficiencies, its overall compliance and effectiveness are still under scrutiny. This means that while regulations exist on paper, their practical implementation and alignment with global standards can be inconsistent.

**Constitutional Law of the Integral System of Cryptoassets (Ley Constitucional del Sistema Integral de Criptoactivos)**: This foundational law, enacted in **2018**, establishes the legal basis for cryptoassets, mining, exchanges, and other related activities, and grants SUNACRIP its regulatory powers.

Link (Spanish): Gaceta Oficial Extraordinaria N° 6.370 - Ley Constitucional del Sistema Integral de Criptoactivos (Note: May need to search for the specific Gaceta Oficial number for the most direct link, as these are sometimes paywalled or moved).

**SUNACRIP Providencias (Administrative Orders)**: SUNACRIP issues specific administrative orders that detail the implementation of the Constitutional Law.

**Providencia N° 094-2020** (dated October 16, 2020): This is a key regulation that establishes the "General Rules of Prevention and Control of Money Laundering, Financing of Terrorism and Proliferation of Weapons of Mass Destruction, Applicable to Virtual Asset Service Providers (VASPs) and Users of the National Cryptoasset System." This providencia is crucial for AML/CFT compliance in the crypto sector.

**Effective Date:** **October 16, 2020**.

Link (Spanish): Providencia N° 094-2020 - Gaceta Oficial N° 41.986 (See page 13 for the start of Providencia 094-2020).

**No Explicit Travel Rule Threshold:** Providencia N° 094-2020, while mandating robust identification and transaction monitoring, does not explicitly set a specific threshold (e.g., 1,000 USD/EUR) for *inter-VASP information sharing* in the same way the FATF Travel Rule recommends.

**Focus on Identification for All Transactions:** Instead, the Venezuelan framework requires VASPs to:

Identify and verify the identity of **all** clients/users for *any* transaction, regardless of amount (Article 8 of Providencia 094-2020).

Maintain records of all transactions.

**Suspicious Transaction Reporting (STR) Threshold:** The focus is on identifying and reporting **suspicious transactions** to the National Financial Intelligence Unit (UNIF), rather than a blanket information exchange for all transactions above a specific amount.

**Exchanges:** Crypto-fiat and crypto-crypto exchanges.

**Custodians:** Entities providing custodial services for cryptoassets.

**Issuers:** Entities involved in the issuance of cryptoassets.

**Transfer Services:** Entities facilitating the transfer of cryptoassets.

**Other Service Providers:** Any natural or legal person that, on behalf of a third party, carries out operations related to virtual assets (e.g., crypto ATM operators, wallet providers that facilitate transfers, etc.).

**All must be registered with SUNACRIP.**

**No Specific Protocol Mandated:** Venezuelan regulations (Providencia 094-2020) do not specify particular technical protocols for Travel Rule compliance (e.g., TRISA, Sygna, OpenVASP).

**Internal Systems and Reporting:** VASPs are required to:

Implement robust internal AML/CFT policies and procedures.

Maintain detailed records of all transactions and customer information.

Establish secure systems for identifying clients, monitoring transactions, and detecting suspicious activities.

Report suspicious transactions and other required information to SUNACRIP and the UNIF in the prescribed formats.

**API/Interoperability:** While the spirit of the Travel Rule is there (knowing sender/receiver), the technical requirement for VASPs to share originator/beneficiary information directly with *each other* for every transaction above a threshold is not explicitly detailed as a *technical interoperability* mandate. The emphasis is on internal record-keeping and reporting to central authorities.

**Fines:** Substantial monetary fines, which can vary based on the severity of the infraction and the VASP's size. These are often denominated in Petro (PTR), Venezuela's state-backed cryptocurrency, which can fluctuate in value relative to other currencies.

**Suspension or Revocation of Licenses/Authorizations:** SUNACRIP has the power to suspend or revoke the operating licenses of non-compliant VASPs.

**Confiscation of Assets:** Assets related to illicit activities can be confiscated.

**Criminal Charges:** Serious AML/CFT breaches can lead to criminal charges for individuals involved, including imprisonment, under Venezuela's broader anti-money laundering and anti-terrorism financing laws.

**Article 57 of the Constitutional Law of the Integral System of Cryptoassets** details penalties for operating without authorization, fraudulent use, and other offenses, with fines ranging from 50 to 300 Petro and potential imprisonment. Providencia 094-2020 also refers to these penalties for AML/CFT violations.

**Regulator Name:** Venezuelan Public Prosecutor's Office (Ministerio Público), National Anti-Corruption Police, Venezuelan Judicial System.

**Entity Targeted:** High-ranking officials from the state oil company PDVSA, the Superintendency of Cryptoassets (SUNACRIP), the Venezuelan Guayana Corporation (CVG), and associated private businessmen. Notably, **Joselit Ramírez Camacho**, the former head of SUNACRIP, was among those arrested.

**Violation Type:** Corruption, embezzlement, illicit enrichment, money laundering, and treason. The scheme involved diverting billions of dollars in oil sales by conducting transactions outside official channels, often using cryptocurrencies and an parallel financial system to bypass sanctions and hide funds.

**Penalty Amount:** The Public Prosecutor's Office initially reported the embezzlement of over **$21 billion USD**, though later estimates varied. Penalties include the arrest of over 60 individuals, confiscation of luxury assets (vehicles, real estate), and ongoing trials.

**Date:** Investigations and arrests began in **March 2023** and are ongoing.

**Outcome:** A major political and economic scandal that led to a significant purge within the Venezuelan government and state-owned companies. SUNACRIP was effectively intervened and restructured, its functions curtailed, and its leadership entirely replaced. The scandal severely undermined trust in government-backed crypto initiatives and has had a chilling effect on the local crypto ecosystem, increasing regulatory uncertainty.

**Source URL 1 (Reuters):** https://www.reuters.com/world/americas/venezuela-arrests-head-state-oil-company-crypto-unit-amid-corruption-probe-2023-03-18/

**Source URL 2 (Associated Press):** https://apnews.com/article/venezuela-corruption-pdvsa-crypto-jose-nogueira-ramirez-e55c325c3f91c6e1e1272b157b853b92

**Source URL 3 (BBC):** https://www.bbc.com/news/world-latin-america-64998399

**Regulator Name:** Superintendencia Nacional de Criptoactivos y Actividades Conexas Venezolanas (SUNACRIP), often in coordination with the National Electric Corporation (CORPOELEC) and various law enforcement agencies (e.g., SEBIN, CICPC).

**Entity Targeted:** Individuals and businesses operating cryptocurrency mining farms or crypto exchanges without the required licenses, permits, and registration from SUNACRIP. This also often included those engaged in electricity theft to power mining operations.

**Violation Type:** Operating illegal cryptocurrency mining farms, facilitating unregistered crypto transactions, non-compliance with SUNACRIP's regulatory framework, and in many cases, electricity theft.

**Penalty Amount:** Seizure and confiscation of high-value mining equipment (ASIC miners, GPUs), shutdown of operations, and arrests of operators. Specific monetary fines, while stipulated in SUNACRIP regulations, were less frequently publicized compared to asset seizures.

**Date:** These types of enforcement actions were consistent throughout **2021 and 2022** and continued into early 2023, preceding the major PDVSA scandal.

**Outcome:** Forced compliance with the government's centralized crypto regulations, reduction of informal or illicit mining activities, and an attempt to consolidate control over all crypto-related economic activity within the state's purview. These actions contributed to a more controlled and less decentralized crypto environment in Venezuela.

**Source URL 1 (Bitcoin.com News, reporting on SUNACRIP actions):** https://news.bitcoin.com/venezuelan-crypto-regulator-cracks-down-on-unlicensed-miners/

**Source URL 2 (Diario Versión Final - Local Venezuelan news, reporting on a specific confiscation):** https://versionfinal.com.ve/sucesos/incautan-minadores-de-criptomonedas-en-zulia/ (Note: This is an example of a specific local report showing the type of action taken, as SUNACRIP often didn't issue press releases for every minor seizure.)

**Source URL 3 (La Nación - Local Venezuelan news, another example of a crackdown):** https://www.lanacionweb.com/sucesos/incautan-158-minadores-de-criptomonedas-en-san-antonio/