Venezuela’s Crypto Bill Is Now Officially In Force

The crypto bill that establishes a legal framework for the crypto industry in Venezuela has officially come into force according to the published decree in the official crypto news media outlet of the government Gaceta Oficial.

The rules that are referring to traders, miners and crypto entrepreneurs was approved by the Constituent National Assembly and the document that was brought into force is named ‘’Constituent Decree on the Integral System of Crypto Assets’’ with 63 articles. The articles contain short definitions of crypto terminology, the blockchain, mining, and cryptography.

The decree also establishes licenses for mining entities that are obligatory and fines for crypto exchanges who conduct unlicensed activities. The bill empowers the national crypto watchdog-Sunacrip that aims to inspect the entity of crypto-related activities in the country. This government body should monitor miners, exchanges and other services that might operate as an intermediary in the Venezuelan market.

Sunacrip will be able to ‘’control creation, emission, transfer and commercialization’’ of all crypto activities in Venezuela.

The decree describes the entire registration procedures for crypto exchanges, mining entities, and wallets. There are 28 different types of licenses for crypto startups and the types of crypto assets they manage.

If a crypto-related company violates the rules in the decree or fails to register properly with Sunacrip, the owners will be punished with 1 to 3 years in prison and will be fined between $3,000 and $6,000.

In the meantime, Petro, the oil-backed cryptocurrency is not mentioned in the decree. Venezuela is still facing one of the harshest political crises and the self-proclaimed president of the country Juan Guaido believes that Petro is nothing but a ‘’smoke curtain’’ with hopes to cover up hyperinflation.