Venezuela’s cryptocurrency legal framework established as Petro comes into the fore

Venezuela has been at the forefront of a revolution in terms of both governmental shifts as well as its economic framework. The establishment of Juan Guaido as the acting president of Venezuela has been met with clashes and disagreements by the supporters of the current president, Nicolas Maduro.

Another system established by the incumbent President was to do away with the crumbling Bolivar and replace it with Petro, Venezuela’s native cryptocurrency. The ‘Sovereign Bolivar’ has been a much talked about topic within the country as well on an international scale.

According to the latest report from within Venezuela, it is known that the decree establishing a legal framework for cryptocurrencies in Venezuela has entered into force. The document titled “Constituent Decree on the Integral System of Crypto Assets” has been published in the country’s official gazette with over 63 articles present in it. The articles are aimed to ensure legitimate transactions as well as laying down a proper groundwork for penalties and developments.

Ramirez Joselit, the Superintendent of Sunacrip, Venezuela’s Superintendency of Crypto Assets and Related Activities, tweeted:

“Today the constituent decree that will govern the operation of the Integral System of Crypto Assets of Venezuela was published in Official Gazette Number 41.575.”

The 63 articles are divided into six sections where the first five sections will cover general information about the decrees whereas the sixth section will cover the “structure of the Integral System of Crypto Assets. According to articles 3:

“The scope of application of this constituent decree [covers] goods, services, values or activities related to the constitution, issuance, organization, operation and use of [the] national crypto assets and [other] crypto assets, within the national territory, as well as the purchase, sale, use, distribution and exchange of any product or service derived from them and other activities that are connected.”

Sunacrip, the organization that deals with crypto regulations in Venezuela stated:

“[Sunacrip] will exercise the broadest powers within the legal and constitutional framework, to regulate the creation, issuance, organization, operation and use of crypto assets, and consequently, to regulate the operation of the exchange houses and other crypto asset financial services, as well as activities associated with digital mining.”

With the updates and developments, the decrees also mention the penalties that will be levied on people who flout the rules. Anyone caught dealing with cryptocurrencies without the due authorization of the governing body will be sanctioned with a fine equivalent to 100 to 300 sovereign crypto assets.

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