Venezuela -- Regulatory Status Regulatory Overview

Venezuela has a partial but significant regulatory framework for cryptocurrencies and virtual assets, characterized by a history of strong state control and a recent major shift. While the state-backed Petro cryptocurrency was officially shut down in early 2024, the underlying regulatory structure for other private cryptocurrencies remains in place, emphasizing registration, licensing, and oversight.

Regulatory Approach

Venezuela's approach can be described as partial but significant, with a history of state-centric control.

• 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.

Primary Regulatory Bodies

1. Superintendencia Nacional de Criptoactivos y Actividades Conexas (SUNACRIP - National Superintendence of Crypto Assets and Related Activities):

   • 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.

2. 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

3. 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.

Key Legislation Names and Dates

1. 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.

2. 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.
   • Key Provisions:
     • 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).
     • Establishes penalties for non-compliance.
   • 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).

3. SUNACRIP Resolutions:

   • 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.

Current Stance on Crypto Trading and Exchanges

• 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.

In summary, Venezuela's crypto regulatory landscape is one of state control. While the state-issued Petro is no longer operational, the robust regulatory framework established under the Constitutional Law of the Venezuelan Crypto-Asset System, primarily enforced by SUNACRIP, ensures that all private crypto activities, including trading and exchanges, operate under strict licensing, registration, and compliance requirements.