Back to Analyses

Venezuela

Retail_Trading_Status

Allowed-Regulated Unknown
Edit
Analysis ID
#333
Version
Archived
Created
2025-06-26 09:20
Workflow Stage
Initial Research

Executive Summary

Retail cryptocurrency trading is legally permitted in Venezuela but is subject to a developing regulatory framework primarily overseen by the National Superintendency of Cryptoassets and Related Activities (SUNACRIP). The "Constituent Decree on the Integral System of Cryptoassets" (SIC) provides the main legal basis for crypto activities, granting SUNACRIP broad regulatory powers. Crypto exchanges, miners, and brokers require licenses, and KYC/AML regulations are in place, though enforcement is inconsistent. High inflation and economic instability have driven citizens to use cryptocurrencies despite regulatory complexities and the prior shutdown of the state-backed Petro.

Key Pillars

The primary regulator is the National Superintendency of Cryptoassets and Related Activities (SUNACRIP), established in 2018 and reorganized in 2019, responsible for overseeing the crypto sector, including licensing crypto-related businesses and registering users. Core compliance requirements include AML/KYC regulations, such as SUNACRIP Ruling No. 044-2021 and subsequent rules tightening KYC/AML requirements for Virtual Asset Service Providers (VASPs). Licensing is required for crypto exchanges, miners, and brokers to operate legally, outlined in SUNACRIP regulations.

Landmark Laws

Constituent Decree on the Integral System of Cryptoassets (SIC): Provides the main legal basis for crypto activities in Venezuela, allowing for the creation, circulation, use, and exchange of crypto assets by individuals and legal entities.
SUNACRIP Ruling No. 044-2021: Concerns risk management and AML policies for the crypto sector.
SUNACRIP Ruling No. 008-2019: Introduced the Integral Registry of Cryptoasset Services (RISEC) to systematize user information.

Considerations

Crypto assets are treated as legal, allowing business models to be developed around them. Crypto transactions are subject to taxation, with a proposed tax of up to 20% on crypto-related transactions in 2022. Enforcement of regulations is inconsistent, and the environment is subject to abrupt policy changes. Risks and concerns include those related to AML, the burden of crypto mining on the national power grid, and corruption within regulatory bodies. Challenges include inconsistent enforcement, the gray market, and the termination of the state-backed Petro.

Notes

Historically, Venezuela’s engagement with cryptocurrencies has been driven by hyperinflation and international sanctions, leading to significant adoption. SUNACRIP faced operational challenges, including a temporary suspension and restructuring in 2023 due to a corruption scandal. Mining was legalized in September 2020 but faced crackdowns and a reported ban in 2024. The crypto market in Venezuela operates within a "gray market" – not illegal, but not fully regulated. Citizens use international exchange platforms due to high inflation and economic instability.

Detailed Explanation

Retail cryptocurrency trading is legally permitted in Venezuela but operates within a developing and inconsistently enforced regulatory framework. The National Superintendency of Cryptoassets and Related Activities (SUNACRIP), established in 2018 and reorganized in 2019, is the primary regulatory body. Historically, hyperinflation and international sanctions drove cryptocurrency adoption in Venezuela. The government launched the Petro in 2018, but it was reportedly shut down in early 2024. The "Constituent Decree on the Integral System of Cryptoassets" (SIC) provides the legal basis for crypto activities, granting SUNACRIP broad powers to regulate and license exchanges, miners, and brokers. SUNACRIP's functions include licensing crypto-related businesses and registering users through the Integral Registry of Cryptoasset Services (RISEC). However, SUNACRIP faced a temporary suspension in 2023 due to corruption, expected to resume operations with private sector involvement through CAVEMCRIP in March 2024. Crypto exchanges, miners, and brokers require licenses from SUNACRIP. In 2021, SUNACRIP regulation outlined conditions for Exchange Houses, including licensing fees. AML/KYC regulations are implemented, with SUNACRIP issuing Ruling No. 044-2021 on risk management. In May 2021, new rules tightened KYC/AML requirements for VASPs, mandating detailed user information and reporting transactions over €1,000, aligning with FATF's travel rule. Crypto transactions are subject to taxation, with a proposed tax of up to 20% in 2022. Mining was legalized in September 2020, requiring registration with the Integral Miners Registry (RIM) and operation through the National Mining Pool, but a ban was reported in 2024. Enforcement has been inconsistent, and the environment is subject to abrupt policy changes. The crypto market operates within a "gray market" – not illegal, but not fully regulated. Despite complexities, retail trading continues, facilitated by international platforms, driven by economic instability. Coinfomania reported on April 16, 2025, that Bitcoin is legal but regulated by SUNACRIP, requiring exchanges, miners, and brokers to obtain licenses and miners to enroll in RIM. Elliptic stated on April 5, 2023, that cryptoassets are legal and regulations allow business models, with the SIC being the main regulatory framework. Bitcoin.com News reported on May 3, 2021, that SUNACRIP strengthened AML/KYC requirements for VASPs, requiring detailed information and reporting transactions over 1,000 EUR. EL PAÍS English noted on January 4, 2025, that the "gray market" is tolerated by the government as a source of foreign currency. Chainalysis noted on October 9, 2024, that crypto adoption remains strong despite uncertainty and experiments like the Petro and crackdowns on Bitcoin mining.

Summary Points

Retail Cryptocurrency Trading Status in Venezuela (as of 2025-06-26)

Overall Status: Allowed-Regulated

I. Key Regulatory Bodies & Roles

  • National Superintendency of Cryptoassets and Related Activities (SUNACRIP):
    • Primary regulatory body overseeing the crypto sector.
    • Established in 2018, reorganized in 2019.
    • Responsibilities:
      • Licensing crypto exchanges, miners, and brokers.
      • Registering users of crypto services through the Integral Registry of Cryptoasset Services (RISEC).
      • Establishing rules and regulations for the crypto sector.
    • Note: SUNACRIP faced operational challenges, including a temporary suspension and restructuring in 2023 due to corruption. Expected to resume full operations with private sector involvement (CAVEMCRIP) in March 2024.
  • Venezuelan Chamber of Fintech and Cryptocurrencies (CAVEMCRIP):
    • Newly formed chamber expected to participate in regulation alongside SUNACRIP.

II. Important Legislation & Regulations

  • Constituent Decree on the Integral System of Cryptoassets (SIC):
    • Main legal basis for crypto activities in Venezuela.
    • Allows creation, circulation, use, and exchange of crypto assets by individuals and legal entities.
    • Grants SUNACRIP broad regulatory powers.
  • SUNACRIP Ruling No. 044-2021:
    • Concerns risk management and AML policies.
  • SUNACRIP Regulations (May 2021):
    • Tightened KYC/AML requirements for Virtual Asset Service Providers (VASPs).
  • Proposed Tax Bill (2022):
    • Proposed tax of up to 20% on crypto-related transactions.
  • Accounting Regulation:
    • Allowed and encouraged merchants to sell in cryptocurrencies and record these transactions.

III. Requirements for Compliance

  • Licensing:
    • Crypto exchanges, miners, and brokers require licenses from SUNACRIP.
    • SUNACRIP regulation outlined general conditions for the operation of Exchange Houses, including licensing fees (2021).
  • KYC/AML:
    • VASPs must collect detailed user information.
    • VASPs must report transactions over a certain threshold (e.g., €1,000) to SUNACRIP.
    • VASPs must appoint a compliance officer and implement plans to minimize money laundering risks.
    • Compliance aligns with FATF's travel rule.
  • Mining Registration:
    • Miners required to register with the Integral Miners Registry (RIM).
    • Miners required to operate through the National Mining Pool.

IV. Notable Restrictions & Limitations

  • Inconsistent Enforcement:
    • Regulatory enforcement is described as inconsistent.
    • Environment subject to abrupt policy changes.
  • Mining Crackdowns:
    • Reported ban on crypto mining in 2024 due to concerns about the national power grid.
  • "Gray Market" Operations:
    • Crypto market operates within a "gray market" – not illegal, but not fully and consistently regulated.

V. Recent Developments & Changes

  • Petro Shutdown:
    • The state-backed cryptocurrency, the Petro, was reportedly shut down in early 2024.
  • SUNACRIP Restructuring:
    • SUNACRIP faced a temporary suspension and restructuring in 2023 due to a corruption scandal.
  • Private Sector Involvement:
    • Expected resumption of SUNACRIP operations with private sector involvement (CAVEMCRIP) in March 2024.
  • Continued Crypto Adoption:
    • Despite regulatory complexities, retail trading by individuals continues, often facilitated by international exchange platforms.
    • High inflation and economic instability have historically pushed citizens towards cryptocurrencies.

VI. Key Takeaways

  • Retail cryptocurrency trading is allowed but regulated in Venezuela.
  • SUNACRIP is the primary regulator, but its effectiveness has been inconsistent.
  • KYC/AML requirements are in place, but enforceability is questionable, especially for international platforms.
  • The regulatory environment is dynamic and subject to change.
  • Economic factors continue to drive crypto adoption despite regulatory uncertainties.

Full Analysis Report

Report on Retail Cryptocurrency Trading Status in Venezuela

Date: 2025-06-26

Topic: Retail_Trading_Status

Description: Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).

Retail_Trading_Status: Allowed-Regulated

1. Identified Current Status: Allowed-Regulated

2. Detailed Narrative Explanation:

Retail cryptocurrency trading, encompassing the buying, selling, and holding of cryptocurrencies by individual citizens and residents, is legally permitted in Venezuela but is subject to a developing and often inconsistently enforced regulatory framework. The primary regulatory body is the National Superintendency of Cryptoassets and Related Activities (SUNACRIP), established in 2018 and reorganized in 2019.

Historically, Venezuela's engagement with cryptocurrencies has been notable, partly driven by severe economic challenges, including hyperinflation and international sanctions. This led to a significant adoption of cryptocurrencies by the populace as a store of value, for everyday transactions, and for receiving remittances. The government itself launched a state-backed cryptocurrency, the Petro, in 2018, though its adoption and success were limited, and it was reportedly shut down in early 2024.

The "Constituent Decree on the Integral System of Cryptoassets" (SIC) provides the main legal basis for crypto activities in Venezuela. This decree allows for the creation, circulation, use, and exchange of crypto assets by individuals and legal entities. It grants SUNACRIP broad powers to regulate, supervise, and control all activities related to crypto assets, including issuing licenses for exchanges, miners, and brokers.

Regulatory Environment:

  • Legality and Permission: Individuals are generally permitted to buy, sell, and hold cryptocurrencies. The Cryptoassets Constituent Decree explicitly allows the use and exchange of crypto assets by individuals.
  • SUNACRIP's Role: SUNACRIP is the key regulator responsible for overseeing the crypto sector. Its functions include licensing crypto-related businesses, registering users of crypto services through the Integral Registry of Cryptoasset Services (RISEC), and establishing rules for the sector. However, SUNACRIP itself has faced operational challenges, including a temporary suspension and restructuring in 2023 due to a corruption scandal. It was expected to resume full operations with private sector involvement in regulation through the newly formed CAVEMCRIP (Venezuelan Chamber of Fintech and Cryptocurrencies) in March 2024.
  • Licensing: Crypto exchanges, miners, and brokers are required to obtain licenses from SUNACRIP to operate legally in Venezuela. For instance, a 2021 SUNACRIP regulation outlined general conditions for the operation of Exchange Houses, including licensing fees.
  • KYC/AML Requirements: Venezuela has implemented Anti-Money Laundering (AML) and Know-Your-Customer (KYC) regulations for the crypto sector. SUNACRIP issued Ruling No. 044-2021 concerning risk management and AML policies. In May 2021, SUNACRIP published a new set of rules to tighten KYC/AML requirements for Virtual Asset Service Providers (VASPs), mandating them to collect detailed information about users and report transactions over a certain threshold (e.g., €1,000) to SUNACRIP, aligning with FATF's travel rule. VASPs are required to appoint a compliance officer and implement plans to minimize money laundering risks. However, the enforceability of these rules, especially for international platforms without a physical presence in Venezuela, has been questioned.
  • Taxation: Crypto transactions are subject to taxation. A bill was proposed in 2022 to set a tax of up to 20% on crypto-related transactions, though its implementation details may vary. An accounting regulation also allowed and encouraged merchants to sell in cryptocurrencies and record these transactions in their bookkeeping.
  • Mining: Crypto mining was legalized in September 2020, with miners required to register with the Integral Miners Registry (RIM) and operate through the National Mining Pool. However, there have been subsequent crackdowns and even a reported ban on crypto mining in 2024 due to concerns about its burden on the national power grid.
  • Warnings and Inconsistent Enforcement: While there's a regulatory framework, enforcement has been described as inconsistent, and the environment can be subject to abrupt policy changes. The government's stance has sometimes appeared contradictory, supporting blockchain innovation to an extent while also imposing strict controls and facing issues of corruption within regulatory bodies. This has led some to describe the crypto market in Venezuela as operating within a "gray market" – not illegal, but not fully and consistently regulated.

Despite the regulatory complexities and inconsistencies, retail trading by individuals continues, often facilitated by international exchange platforms. The high inflation and economic instability have historically pushed citizens towards cryptocurrencies as a means of financial survival.

3. Specific, Relevant Text Excerpts:

  • Coinfomania (April 16, 2025): "Is Bitcoin legal in Venezuela? Bitcoin indeed is legal but it goes under the regulations of SUNACRIP."
  • Coinfomania (April 16, 2025): "SUNACRIP also requires crypto exchanges, miners and brokers to obtain a license. Also, miners need to enroll in the Integral Miners Registry (RIM) and join the National Mining Pool."
  • Elliptic (April 5, 2023): "In Venezuela, cryptoassets are legal, and regulations allow business models to be developed around these technologies... The Constituent Decree on the Integral System of Crypto-assets (SIC): is the main regulatory framework for cryptoassets in Venezuela... it also introduces control and monitoring processes for activities related to cryptoassets in the country."
  • Elliptic (April 5, 2023): "Later on – under SUNACRIP Ruling No. 008-2019 – the Integral Registry of Cryptoasset Services (RISEC) was introduced to digitally systematize the information related to the identity and other recurring data of the users of the cryptoasset system."
  • Bitcoin.com News (May 3, 2021): "Sunacrip, the Venezuelan cryptocurrency watchdog, has recently published a new set of AML/KYC requirements for VASPs (Virtual Asset Service Providers) that establishes new and updated rules about the kind of information these providers must require and share with the Venezuelan government..."
  • Bitcoin.com News (May 3, 2021): "Also, the rule establishes that every transaction with a value of over 1,000 EUR should be transmitted immediately, along with the ID's of both sender and receiver of the funds, complying with the so-called travel rule established and officially accepted by the Financial Action Task Force (FATF) on 2019..."
  • Norton Rose Fulbright (via Venfort Abogados): "...in Official Gazettes No. 6,370 and 6,371 Extraordinary dated April 9, 2018, were published: (a) the Constituent Decree on Cryptoassets and the Petro Sovereign Cryptocurrency... (b) Decree No. 3,355 of the President of the Republic, whereby the Superintendence of Crypto-assets of Venezuela and Related Activities ('SUPCACVEN') is created and regulated in detail..." This decree was later updated, replacing SUPCACVEN with SUNACRIP.
  • EL PAÍS English (January 4, 2025): "This scenario of digital pseudonyms operating within a gray market — which is not illegal, but also not regulated — is tolerated by Nicolás Maduro's government because it has become an avenue for scarce foreign currency to enter a country..." This quote highlights the sometimes ambiguous nature of enforcement despite existing regulations.
  • Chainalysis (October 9, 2024): "Crypto adoption remains strong in Venezuela, despite Maduro regime uncertainty. Venezuela's relationship with cryptocurrency has been nothing short of turbulent, marked by experiments like the launch (2018) and subsequent abrupt termination (2024) of the state-backed petro (PTR)... as well as crackdowns on Bitcoin mining and blocked access to certain mainstream crypto exchanges."

4. Direct, Accessible URL Links to Sources:

  • Coinfomania - Cryptocurrency Regulations in Venezuela: https://coinfomania.com/cryptocurrency-regulations-in-venezuela/
  • Crypto Usage Grows in Venezuela Despite Government Mismanagement (GlobalData - Regulation News): https://www.globaldata.com/analyst-insights/crypto-usage-grows-in-venezuela-despite-government-mismanagement/ (Note: The direct link might be behind a paywall or require registration, the search result provides the content summary). A general search for the title may yield accessible versions.
  • Elliptic - Venezuela Country Guide: https://www.elliptic.co/resources/country-guide-venezuela
  • EL PAÍS English - The new gray-area dollar in Venezuela is digital: https://english.elpais.com/economy-and-business/2025-01-04/the-new-gray-area-dollar-in-venezuela-is-digital.html
  • Freeman Law - Venezuela & Cryptocurrency: https://freemanlaw.com/venezuela-cryptocurrency/
  • Baker McKenzie (via multiple aggregators, original likely on their site) - Venezuela issues general legal framework on cryptoassets and the “petro” cryptocurrency (April 2018 report): While a direct link to the original Baker McKenzie report from 2018 wasn't in the top results, summaries and references are available e.g. https://www.bakermckenzie.com/-/media/files/insight/publications/2018/04/al_caracas_venezuelageneralcrypto_apr18.pdf (This is a potential structure of such a link, actual availability may vary). A search for "Baker McKenzie Venezuela cryptoassets legal framework April 2018" may locate it. A similar report is also referenced by Venfort Abogados.
  • Lexology (quoting a law firm, likely related to the SUNACRIP mining regulations): https://www.lexology.com/library/detail.aspx?g=e6a3f1a9-9fb2-4a03-900b-c6628b08053a (This is an example of a Lexology link structure, the specific article on SUNACRIP's 2020 mining regulations would need to be located via their search using keywords like "Venezuela SUNACRIP digital mining 2020"). The content is also summarized in search result from "Blockchain" news.
  • CoinJournal - How to Buy Cryptocurrency in Venezuela - 2025 Beginner's Guide: https://coinjournal.net/news/how-to-buy-cryptocurrency-in-venezuela/
  • Venfort Abogados - What do you need to know to understand cryptoassets in Venezuela?: https://venfort.com/en/what-do-you-need-to-know-to-understand-cryptoassets-in-venezuela/
  • Bitcoin.com News - Venezuelan Crypto Regulator Sunacrip Strengthens AML/KYC Requirements for Virtual Asset Service Providers: https://news.bitcoin.com/venezuelan-crypto-regulator-sunacrip-strengthens-aml-kyc-requirements-for-virtual-asset-service-providers/
  • Eversheds Sutherland - Venezuela - Global AML Guide: https://www.eversheds-sutherland.com/global/en/what/industries/financial-institutions/global-aml-guide/index.page?cn=Venezuela
  • The Deerfield Report - Venezuela: A Developing Crypto Nation?: https://deerfieldreport.com/2022/03/01/venezuela-a-developing-crypto-nation/
  • Brave New Coin - Crypto Takes Center Stage as Venezuelans Abandon the Dollar: https://bravenewcoin.com/insights/crypto-takes-center-stage-as-venezuelans-abandon-the-dollar
  • Manimama Law Firm - VASP regulation in Venezuela: https://manimama.com/vasp-regulation-in-venezuela/
  • Chainalysis - 2024 LATAM Crypto Adoption: The Rise of Stablecoins: https://www.chainalysis.com/blog/2024-latam-crypto-adoption-report-stablecoins/
  • Central Banking - Venezuela shuts down state cryptocurrency: https://www.centralbanking.com/fintech/crypto-assets/7960781/venezuela-shuts-down-state-cryptocurrency
  • Forbes - Venezuela’s Crypto Rebirth: Interview With Enrique De Los Reyes: https://www.forbes.com/sites/tatianakassier/2024/03/06/venezuelas-crypto-rebirth-interview-with-enrique-de-los-reyes/

Disclaimer: The regulatory landscape for cryptocurrencies can be highly dynamic. This report reflects the understanding based on the available information up to the indicated date.

Web Sources (17)

Sources discovered via web search grounding

Search queries used (8)
  • current status of retail cryptocurrency trading in Venezuela 2024 2025
  • Venezuela cryptocurrency regulation retail investors
  • SUNACRIP regulations for individuals Venezuela
  • Legal framework for buying and selling cryptocurrencies in Venezuela for citizens
  • KYC/AML requirements cryptocurrency exchanges Venezuela
  • Official statements Venezuelan government cryptocurrency retail trading
  • Is cryptocurrency trading legal for individuals in Venezuela?
  • Recent changes to cryptocurrency laws in Venezuela
Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Reviews

No reviews yet

Submit Review

Challenge: Disagree with the analysis | Approval: Confirm it's correct | Refinement: Suggest improvements