On January 31, Venezuela became the latest country to enforce a full crypto regulatory framework for business operating within the emerging industry.
The new set of rules was approved by the country’s Constituent National Assembly in November 2018 and should bring some calm to at least a section of Venezuela’s troubled economy.
In this article, we’ll provide a breakdown of all the major laws in the new regulatory framework titled — Constituent Decree on the Integral System of Crypto Assets.
Article 11 states the Superintendencia Nacional de Criptoactivos y Actividades Conexas (Sunacrip) a regulatory body created last year in Venezuela, will monitor the crypto industry and its activities. The agency will also be responsible for issuing licenses to crypto business operators.
Article 28 states that the scope of activity carried out by crypto exchanges will be determined by the level of license it receives from Sunacrip. Type of cryptocurrencies offered by the exchange and the type of users on the platform will be considered before issuing a license to them.
The Venezuelan Petro was not directly mentioned in the document but was referred to several times as sovereign crypto-assets.
Article 46 stipulates prison terms of one to three years for cryptocurrency exchanges and other business that allow its platform to be used for money laundering and other illegal activities. Another alternative to the prison term would be a fine of 50 to 100 Venezuelan Petro coin ($3,000 to $6,000).
Noncompliance with regulatory rules about the license will result in a fine of 100-300 Venezuelan Petro Coin ($6000-$18,000).
Sunacrip will confiscate mining machines and revoke licenses in a case where the operator fails to meet regulatory compliance. Seized machines can either be kept by the regulators or donated for social purposes.
The rules are now binding on businesses following its publication in the Gaceta Official.
Aside from Venezuela, efforts to regulate cryptocurrency has intensified in recent times. Since the turn of the year, the U.K Financial Conduct Authority (FCA) and the South African Reserve Bank (SARB) has released a crypto regulatory framework for their jurisdiction.
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