Venezuela
Retail_Trading_Status
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- 2025-06-26 12:57
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Executive Summary
Retail cryptocurrency trading is legally permitted in Venezuela but operates under a regulatory framework. The National Superintendency of Cryptoassets and Related Activities (SUNACRIP) oversees crypto activities, requiring licensing for exchanges and miners, as well as AML/KYC compliance for VASPs. The 'Constituent Decree on the Integral System of Cryptoassets' (SIC) serves as the primary legal framework, allowing the creation, circulation, use, and exchange of cryptoassets. Despite the regulatory framework, practical challenges and past instances of government interventions and scandals impact the crypto landscape.
Key Pillars
- Primary Regulator: The National Superintendency of Cryptoassets and Related Activities (SUNACRIP) is responsible for supervising, monitoring, and regulating crypto activities.
- Core Compliance Requirements: Anti-Money Laundering (AML) and Know-Your-Customer (KYC) obligations are mandated for Virtual Asset Service Providers (VASPs).
- Licensing/Registration: Entities involved in cryptocurrency activities, such as exchanges, miners, and brokers, are required to obtain licenses and register with SUNACRIP. Miners, for example, need to enroll in the Integral Miners Registry (RIM).
Landmark Laws
- Constituent Decree on the Integral System of Cryptoassets (SIC): Serves as the primary legal framework governing crypto activities, explicitly allowing the creation, circulation, use, and exchange of cryptoassets by natural and legal persons. It empowers the National Executive to regulate various aspects of the crypto ecosystem.
- Providence 054-2022: Published by SUNACRIP in March 2022, outlining guidelines for reporting suspicious activities related to Fintech, in line with FATF recommendations.
Considerations
- Legal Classification: Cryptocurrencies are generally treated as assets for tax purposes.
- Tax Treatment: Profits from selling crypto are typically subject to income tax. There have also been decrees mandating the recording of accounting information in Sovereign Cryptoassets (like the Petro), alongside Bolívars.
- Known Risks/Concerns: The regulatory environment has been described as a "gray area" at times, with instances of unclear tax implications and past crackdowns on miners. U.S. sanctions have also targeted Venezuela's attempts to use cryptocurrencies to bypass international financial restrictions.
- Operational Challenges: The use of cryptocurrencies is influenced by Venezuela's economic situation, including hyperinflation. Citizens have turned to cryptocurrencies as a hedge against inflation, for remittances, and for conducting everyday transactions.
Notes
- Historical Context: Venezuela's engagement with cryptocurrency regulation began with the creation of the Petro in 2018. The Petro was officially shut down in January 2024 after facing numerous challenges.
- Future Plans: President Maduro has called for a renewed embrace of cryptocurrencies following the Petro's suspension.
- Disclaimers: The restructuring of SUNACRIP introduced a period of uncertainty for the industry, including a prolonged audit and reorganization process initiated in March 2023 due to corruption scandals.
- Practical Workarounds: Peer-to-peer (P2P) platforms are popular for cryptocurrency transactions, often used with pseudonyms. Despite crackdowns, the underlying use of digital currencies persists, often discreetly.
Detailed Explanation
Detailed Explanation
Retail cryptocurrency trading is legally permitted in Venezuela and is subject to regulation by the National Superintendency of Cryptoassets and Related Activities (SUNACRIP). Venezuela's engagement with cryptocurrency regulation began with the creation of the Petro in 2018, accompanied by the establishment of SUNACRIP (originally SUPCACVEN). The 'Constituent Decree on the Integral System of Cryptoassets' (SIC) serves as the primary legal framework, explicitly allowing the creation, circulation, use, and exchange of cryptoassets by natural and legal persons, both public and private, resident or non-resident. This decree empowers the National Executive to regulate aspects of the crypto ecosystem, including issuance, exchange operations, and mining activities. Entities involved in cryptocurrency activities, such as exchanges, miners, and brokers, are required to obtain licenses and register with SUNACRIP; miners need to enroll in the Integral Miners Registry (RIM). SUNACRIP has issued operating licenses to exchanges authorizing fiat-crypto and crypto-fiat trading.
Venezuela has AML/KYC obligations for VASPs. SUNACRIP has issued specific rules requiring VASPs to collect detailed user information and report suspicious activities, aligning with FATF standards, including the "travel rule." In March 2022, SUNACRIP published Providence 054-2022, outlining guidelines for reporting suspicious activities related to Fintech. Following Venezuela's inclusion in the FATF's list of jurisdictions under increased monitoring in June 2024, the country committed to strengthening its AML/CFT regime. Cryptocurrencies are generally treated as assets for tax purposes, with profits from selling them subject to income tax. SUNACRIP plays a central role in supervising and monitoring crypto activities. However, the institution has faced uncertainty, including a reorganization initiated in March 2023 due to corruption scandals, expected to conclude around March 2024.
While the Petro was a significant early focus, it was officially shut down in January 2024. President Maduro has called for a renewed embrace of cryptocurrencies following the Petro's suspension. Despite the regulatory framework, citizens have turned to cryptocurrencies, particularly stablecoins, as a hedge against hyperinflation, for remittances, and for everyday transactions. Peer-to-peer (P2P) platforms are popular, often used with pseudonyms. The regulatory environment has been described as a "gray area" at times. The restructuring of SUNACRIP introduced a period of uncertainty. U.S. sanctions have targeted Venezuela's attempts to use cryptocurrencies to bypass international financial restrictions.
The fundamental legal basis permits individuals to buy, sell, and hold cryptocurrencies, subject to SUNACRIP's regulations (including KYC/AML for VASPs). Ongoing efforts to strengthen AML/CFT measures, as per FATF recommendations, further underscore the regulated nature of the space, even if enforcement and clarity on all aspects continue to evolve. Elliptic stated in April 2023 that "In Venezuela, cryptoassets are legal, and regulations allow business models to be developed around these technologies... There are anti-money laundering regulations and government agencies in charge of regulating the use of these technologies. In addition, some licenses must be obtained to provide exchange brokerage services or to mine cryptocurrencies." Norton Rose Fulbright referenced the Constituent Decree on Cryptoassets as "the general legal framework formally and explicitly allowing the creation, circulation, use and exchange of cryptoassets, by individuals and legal entities of the public and private sectors, residents or non-residents of Venezuela..." Coinfomania reported in April 2025 that "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. AML/KYC Obligations. AML/KYC compliance is presumed to correlate well with global standards, but public enforcement procedures have no lengthy details."
Summary Points
Okay, here's the regulatory analysis report converted into a clear, well-structured bullet point format:
Retail Cryptocurrency Trading Status in Venezuela: Regulatory Analysis (2025-06-26)
I. Overall Regulatory Status:
- Allowed-Regulated: Retail cryptocurrency trading (buying, selling, and holding) is legally permitted in Venezuela, but operates within a regulatory framework.
- Driven by economic factors (hyperinflation, sanctions) and a desire for alternative financial mechanisms.
II. Key Regulatory Bodies:
- National Superintendency of Cryptoassets and Related Activities (SUNACRIP):
- Primary regulatory body overseeing crypto activities.
- Responsible for licensing, supervision, monitoring, and regulation.
- Formerly known as Superintendence of Cryptoassets of Venezuela and Venezuelan Related Activities (SUPCACVEN).
- Faced internal challenges, including a reorganization process initiated in March 2023 due to corruption scandals. Reorganization expected to conclude around March 2024.
- National Executive:
- Empowered to regulate various aspects of the crypto ecosystem.
III. Important Legislation and Regulations:
- Constituent Decree on the Integral System of Cryptoassets (SIC):
- Primary legal framework governing crypto activities.
- Allows for the creation, circulation, use, and exchange of cryptoassets by natural and legal persons (resident or non-resident).
- Empowers the National Executive to regulate the crypto ecosystem.
- Providence 054-2022:
- Outlines guidelines for reporting suspicious activities related to Fintech, in line with FATF recommendations. Published by SUNACRIP in March 2022.
IV. Requirements for Compliance:
- Licensing and Registration:
- Entities involved in cryptocurrency activities (exchanges, miners, brokers) must obtain licenses and register with SUNACRIP.
- Miners need to enroll in the Integral Miners Registry (RIM).
- AML/KYC Requirements:
- Virtual Asset Service Providers (VASPs) must comply with Anti-Money Laundering (AML) and Know-Your-Customer (KYC) obligations.
- VASPs must collect detailed user information and report suspicious activities.
- Regulations aim to align with international standards (FATF).
- Compliance is influenced by Venezuela's inclusion in FATF's list of jurisdictions under increased monitoring (June 2024).
- Commitment to strengthen AML/CFT regime.
- Taxation:
- Cryptocurrencies are generally treated as assets for tax purposes.
- Profits from selling crypto are typically subject to income tax.
- Decrees mandating the recording of accounting information in Sovereign Cryptoassets (like the Petro), alongside Bolívars.
V. Notable Restrictions or Limitations:
- Government Oversight and Interventions: SUNACRIP has broad powers to supervise and regulate.
- Unclear Tax Implications: Instances of unclear tax implications in practice.
- U.S. Sanctions: U.S. sanctions have targeted Venezuela's attempts to use cryptocurrencies to bypass international financial restrictions.
- Past Crackdowns: Past crackdowns on miners despite formal legalization of mining.
VI. Recent Developments or Changes:
- Petro Shutdown: The Petro, Venezuela's national cryptocurrency, was officially shut down in January 2024.
- SUNACRIP Reorganization: SUNACRIP underwent a prolonged audit and reorganization process initiated in March 2023 due to corruption scandals.
- FATF Monitoring: Venezuela's inclusion in FATF's list of jurisdictions under increased monitoring in June 2024.
- Maduro's Call for Renewed Embrace: President Maduro has called for a renewed embrace of cryptocurrencies following the Petro's suspension.
- Popularity of Stablecoins: Citizens have turned to cryptocurrencies, particularly stablecoins, as a hedge against hyperinflation, for receiving remittances, and for conducting everyday transactions.
- P2P Platforms: Peer-to-peer (P2P) platforms are popular, often used with pseudonyms.
Full Analysis Report
Full Analysis Report
Report on the Current Status of Retail Cryptocurrency Trading 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
Identified Status: Allowed-Regulated
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 operates within a defined, albeit evolving and sometimes complex, regulatory framework. The Venezuelan government has taken a proactive, if at times controversial, approach to cryptocurrencies, driven by a unique set of economic and geopolitical factors, including hyperinflation, international sanctions, and a desire to find alternative financial mechanisms.
Historical Context and Regulatory Milestones:
Venezuela's engagement with cryptocurrency regulation began notably with the creation of its own national cryptocurrency, the Petro, in 2018. This initiative was accompanied by the establishment of a regulatory body, initially known as the Superintendence of Cryptoassets of Venezuela and Venezuelan Related Activities (SUPCACVEN), later restructured and renamed the National Superintendency of Cryptoassets and Related Activities (SUNACRIP).
The "Constituent Decree on the Integral System of Cryptoassets" (SIC) serves as the primary legal framework governing crypto activities in Venezuela. This decree explicitly allows for the creation, circulation, use, and exchange of cryptoassets by natural and legal persons, both public and private, resident or non-resident in Venezuela. It empowers the National Executive to regulate various aspects of the crypto ecosystem, including the issuance, organization, and functioning of cryptoassets, the operation of virtual exchanges, and mining activities.
Key Regulatory Aspects:
- Legality and Promotion: The Venezuelan state, through the Constituent Decree on Cryptoassets, not only permits but also states it will promote, protect, and guarantee the use of cryptocurrencies as a means of payment in public institutions and private enterprises.
- Licensing and Registration: Entities involved in cryptocurrency activities, such as exchanges, miners, and brokers, are required to obtain licenses and register with SUNACRIP. For instance, miners need to enroll in the Integral Miners Registry (RIM). SUNACRIP has issued operating licenses to exchanges, authorizing them to facilitate the trading of cryptocurrencies for fiat currency and vice-versa.
- AML/KYC Requirements: Venezuela has established Anti-Money Laundering (AML) and Know-Your-Customer (KYC) obligations for Virtual Asset Service Providers (VASPs). SUNACRIP has issued specific rules requiring VASPs to collect detailed information about their users and report suspicious activities. These regulations aim to align with international standards, such as those set by the Financial Action Task Force (FATF), particularly concerning the "travel rule" which mandates the transmission of sender and receiver information for transactions above a certain threshold. In March 2022, SUNACRIP published Providence 054-2022, outlining guidelines for reporting suspicious activities related to Fintech, in line with FATF recommendations. More recently, following Venezuela's inclusion in the FATF's list of jurisdictions under increased monitoring in June 2024, the country has committed to strengthening its AML/CFT regime, which directly impacts financial institutions and companies dealing with crypto assets.
- Taxation: Cryptocurrencies are generally treated as assets for tax purposes. While holding crypto itself might not be taxed, profits from selling it are typically subject to income tax. There have also been decrees mandating the recording of accounting information in Sovereign Cryptoassets (like the Petro), alongside Bolívars.
- Government Oversight and Interventions: SUNACRIP plays a central role in supervising, monitoring, and regulating crypto activities. However, the institution itself has faced periods of uncertainty, including a prolonged audit and reorganization process initiated in March 2023 due to corruption scandals involving its former leadership. This reorganization period was extended and was expected to conclude around March 2024, with expectations for SUNACRIP to resume full operations. Despite these internal challenges, the overarching legal framework for crypto regulation remains in place.
- The Petro and its Demise: While the Petro was a significant early focus of Venezuela's crypto strategy, it was officially shut down in January 2024 after facing numerous challenges, including corruption allegations and limited adoption. However, the broader legal framework for other cryptocurrencies remains. President Maduro has even called for a renewed embrace of cryptocurrencies following the Petro's suspension, suggesting a continued interest in leveraging digital assets.
Common Practices and Market Reality:
Despite the regulatory framework, the actual use of cryptocurrencies by individuals in Venezuela is also heavily influenced by the country's economic situation. Citizens have turned to cryptocurrencies, particularly stablecoins, as a hedge against hyperinflation, for receiving remittances, and for conducting everyday transactions. Peer-to-peer (P2P) platforms are popular, often used with pseudonyms. While "we accept crypto" signs may have become less prevalent in physical stores following government crackdowns and scandals, the underlying use of digital currencies persists, often in a more discreet manner. The economic crisis has, in many ways, driven grassroots adoption of cryptocurrencies as a practical financial tool.
Nuances and Complexities:
The regulatory environment, while established, has been described as a "gray area" at times, with instances of unclear tax implications in practice and past crackdowns on miners despite a formal legalization of mining (which was later reportedly banned in 2024 after previously being legalized and regulated). The restructuring of SUNACRIP also introduced a period of uncertainty for the industry. Furthermore, U.S. sanctions have targeted Venezuela's attempts to use cryptocurrencies to bypass international financial restrictions, particularly concerning the Petro.
However, the fundamental legal basis permitting individuals to buy, sell, and hold cryptocurrencies, subject to SUNACRIP's regulations (including KYC/AML for VASPs), remains. The ongoing efforts to strengthen AML/CFT measures, as per FATF recommendations, further underscore the regulated nature of the space, even if enforcement and clarity on all aspects continue to evolve.
In conclusion, retail cryptocurrency trading in Venezuela is legally permitted and subject to a regulatory framework overseen by SUNACRIP. This includes licensing for service providers and AML/KYC requirements. While the practical application and enforcement of these regulations have faced challenges and periods of uncertainty, the underlying legal status is one of being "Allowed-Regulated."
Specific, Relevant Text Excerpts:
- Elliptic (April 5, 2023): "In Venezuela, cryptoassets are legal, and regulations allow business models to be developed around these technologies... There are anti-money laundering regulations and government agencies in charge of regulating the use of these technologies. In addition, some licenses must be obtained to provide exchange brokerage services or to mine cryptocurrencies."
- Norton Rose Fulbright (referencing the Constituent Decree on Cryptoassets): "The Cryptoassets Constituent Decree is the general legal framework formally and explicitly allowing the creation, circulation, use and exchange of cryptoassets, by individuals and legal entities of the public and private sectors, residents or non-residents of Venezuela..." (Similar statements in)
- 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. AML/KYC Obligations. AML/KYC compliance is presumed to correlate well with global standards, but public enforcement procedures have no lengthy details."
- Bitcoin.com News (May 3, 2021, regarding SUNACRIP's AML/KYC rules): "Last week, the Superintendence of Crypto Assets and Linked Activities of Venezuela (Sunacrip), quietly published a new set of rules that aim to tighten the KYC/AML requirements this institution requires from Virtual Asset Service Providers that offer these services on Venezuelan soil."
- InterJuris (referencing the Constituent Decree on Cryptoassets): "El Decreto Constituyente sobre Criptoactivos y la Criptomoneda Soberana Petro... establece las bases para la creación, circulación, uso e intercambio de criptoactivos en Venezuela, por parte de las personas naturales y jurídicas, publicas y privadas, residentes o no en el territorio de la República Bolivariana de Venezuela..." (Translation: "The Constituent Decree on Cryptoassets and the Sovereign Cryptocurrency Petro... establishes the bases for the creation, circulation, use and exchange of cryptoassets in Venezuela, by natural and legal persons, public and private, resident or not in the territory of the Bolivarian Republic of Venezuela...")
- Didit (November 21, 2024): "The KYC and AML legal framework in Venezuela is strongly influenced by its recent inclusion in the FATF's list of jurisdictions under increased monitoring on June 28, 2024. In response, the country has established a high-level political commitment to work with FATF and CFATF in strengthening its AML/CFT regime, resulting in a significant update of its regulatory structure."
- Crixto.com (License issued January 9, 2025): Shows an example of a "LICENCIA DE FUNCIONAMIENTO PARA EL INTERCAMBIO" (Operating License for Exchange) issued by SUNACRIP to a crypto exchange, authorizing activities like exchanging fiat for crypto, crypto for fiat, P2P exchange, custody, and payment gateway services, under the supervision of SUNACRIP and in compliance with AML/CFT laws.
Direct, Accessible URL Links to Sources:
- Elliptic - Venezuela Country Guide (April 5, 2023): https://www.elliptic.co/resources/country-guide-venezuela
- Norton Rose Fulbright - Venezuela issues general legal framework on cryptoassets and the “petro” cryptocurrency (April 2018, referencing decrees from April 9, 2018): https://www.nortonrosefulbright.com/en/knowledge/publications/b43a9f3e/venezuela-issues-general-legal-framework-on-cryptoassets-and-the-petro-cryptocurrency
- Norton Rose Fulbright - Venezuela dicta marco legal general en materia de criptoactivos y de la criptomoneda “Petro” (April 2018, referencing decrees from April 9, 2018, in Spanish): https://www.nortonrosefulbright.com/es-ve/knowledge/publications/b43a9f3e/venezuela-dicta-marco-legal-general-en-materia-de-criptoactivos-y-de-la-criptomoneda-petro
- Coinfomania - Cryptocurrency Regulations in Venezuela (Updated April 16, 2025): https://coinfomania.com/cryptocurrency-regulations-in-venezuela/
- Bitcoin.com News - Venezuelan Crypto Regulator Sunacrip Strengthens AML/KYC Requirements for Virtual Asset Service Providers (May 3, 2021): https://news.bitcoin.com/venezuelan-crypto-regulator-sunacrip-strengthens-aml-kyc-requirements-for-virtual-asset-service-providers/
- InterJuris - Decreto Constituyente Sobre Criptoactivos y la Criptomoneda Soberana Petro (Referencing Gaceta Oficial Extraordinaria N° 6.370, April 9, 2018, in Spanish): https://interjuris.com/decreto-constituyente-sobre-criptoactivos-y-la-criptomoneda-soberana-petro/
- Cointelegraph - ¿Cómo se regulan las criptomonedas en Venezuela? (November 19, 2019, in Spanish, referencing Gaceta Oficial No. 41.575, January 30, 2019): https://es.cointelegraph.com/news/how-are-cryptocurrencies-regulated-in-venezuela
- BYDFi - ¿Qué es el rol de Sunacrip en el mundo de las criptomonedas? (Answers from Feb-May 2025, in Spanish): https://www.bydfi.com/es-ES/learn/crypto-insights/what-is-the-role-of-sunacrip-in-the-world-of-cryptocurrencies
- Lega.law - Decreto Constituyente sobre el sistema Integral de Criptoactivos (Referencing Gaceta Oficial N° 41.575, January 30, 2019, in Spanish): https://lega.law/decreto-constituyente-sobre-el-sistema-integral-de-criptoactivos/
- Didit - Identity Verification, KYC and AML Compliance in Venezuela (November 21, 2024): https://didit.com/blog/kyc-aml-compliance-venezuela/
- KPMG - La Superintendencia Nacional de Criptoactivos (SUNACRIP) publica la Providencia 054-2022 dirigida a las Fintech (March 24, 2022, in Spanish): https://kpmg.com/ve/es/home/insights/2022/03/sunacrip-publica-la-providencia-054-2022.html
- EL PAÍS English - The new gray-area dollar in Venezuela is digital (January 4, 2025): https://english.elpais.com/economy-and-business/2025-01-04/the-new-gray-area-dollar-in-venezuela-is-digital.html
- Cointelegraph - Venezuela prorroga hasta marzo de 2024 la paralización para reorganizar Sunacrip (September 26, 2023, in Spanish): https://es.cointelegraph.com/news/venezuela-extends-sunacrip-reorganization-paralysis-until-march-2024
- Crixto.com - SUNACRIP License (Issued January 9, 2025, Valid until December 31, 2025, in Spanish): https://crixto.com/sunacrip/
- Wilson Center - Crypto in Venezuela: Two Sides of a Coin (April 1, 2024): https://www.wilsoncenter.org/blog-post/crypto-venezuela-two-sides-coin
- Bitcoinworld on Binance Square - Venezuelan President Maduro Calls for Renewed Embrace of Cryptocurrency After Suspending Petro Token (September 3, 2024): https://www.binance.com/en/feed/post/2024-09-03-venezuelan-president-maduro-calls-for-renewed-embrace-of-cryptocurrency-after-suspending-petro-token-1875050080811
- Chainalysis - 2024 LATAM Crypto Adoption: The Rise of Stablecoins (October 9, 2024): https://www.chainalysis.com/blog/2024-latam-crypto-adoption-report/
- Central Banking - Venezuela shuts down state cryptocurrency (January 23, 2024): https://www.centralbanking.com/fintech/crypto-assets/7960851/venezuela-shuts-down-state-cryptocurrency
- Forbes - Venezuela’s Crypto Rebirth: Interview With Enrique De Los Reyes (March 6, 2024): https://www.forbes.com/sites/zengernews/2024/03/06/venezuelas-crypto-rebirth-interview-with-enrique-de-los-reyes/
- CryptoSlate - Crypto Usage Grows in Venezuela Despite Government Mismanagement (August 8, 2024): https://cryptoslate.com/crypto-usage-grows-in-venezuela-despite-government-mismanagement/
- AméricaEconomía - How has the use of cryptocurrencies evolved in Venezuela since Maduro came to power? (August 15, 2024): https://www.americaeconomia.com/negocios-e-industrias/como-ha-evolucionado-el-uso-de-criptomonedas-en-venezuela-desde-la-llegada-de
- Caracas Chronicles - Myths and Realities of Venezuela’s Crypto Regulations (November 5, 2020): https://www.caracaschronicles.com/2020/11/05/myths-and-realities-of-venezuelas-crypto-regulations/
- Proelium Law - Cryptocurrency Regulation Tracker (Accessed June 2024, "Hostile" classification seems outdated given other sources but notes crackdowns and Petro issues): https://www.proeliumlaw.com/cryptocurrency-regulation-tracker/
- Congress.gov - Venezuela: Overview of U.S. Sanctions Policy (June 4, 2025): https://crsreports.congress.gov/product/pdf/IF/IF10715
- CCN.com - Venezuela Turns to Crypto as Citizens Battle Inflation and Instability (December 31, 2024): https://www.ccn.com/news/venezuela-turns-to-crypto-as-citizens-battle-inflation-and-instability/
**Report on the Current Status of Retail Cryptocurrency Trading 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** **Identified Status:** Allowed-Regulated **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 operates within a defined, albeit evolving and sometimes complex, regulatory framework. The Venezuelan government has taken a proactive, if at times controversial, approach to cryptocurrencies, driven by a unique set of economic and geopolitical factors, including hyperinflation, international sanctions, and a desire to find alternative financial mechanisms. **Historical Context and Regulatory Milestones:** Venezuela's engagement with cryptocurrency regulation began notably with the creation of its own national cryptocurrency, the Petro, in 2018. This initiative was accompanied by the establishment of a regulatory body, initially known as the Superintendence of Cryptoassets of Venezuela and Venezuelan Related Activities (SUPCACVEN), later restructured and renamed the National Superintendency of Cryptoassets and Related Activities (SUNACRIP). The "Constituent Decree on the Integral System of Cryptoassets" (SIC) serves as the primary legal framework governing crypto activities in Venezuela. This decree explicitly allows for the creation, circulation, use, and exchange of cryptoassets by natural and legal persons, both public and private, resident or non-resident in Venezuela. It empowers the National Executive to regulate various aspects of the crypto ecosystem, including the issuance, organization, and functioning of cryptoassets, the operation of virtual exchanges, and mining activities. **Key Regulatory Aspects:** * **Legality and Promotion:** The Venezuelan state, through the Constituent Decree on Cryptoassets, not only permits but also states it will promote, protect, and guarantee the use of cryptocurrencies as a means of payment in public institutions and private enterprises. * **Licensing and Registration:** Entities involved in cryptocurrency activities, such as exchanges, miners, and brokers, are required to obtain licenses and register with SUNACRIP. For instance, miners need to enroll in the Integral Miners Registry (RIM). SUNACRIP has issued operating licenses to exchanges, authorizing them to facilitate the trading of cryptocurrencies for fiat currency and vice-versa. * **AML/KYC Requirements:** Venezuela has established Anti-Money Laundering (AML) and Know-Your-Customer (KYC) obligations for Virtual Asset Service Providers (VASPs). SUNACRIP has issued specific rules requiring VASPs to collect detailed information about their users and report suspicious activities. These regulations aim to align with international standards, such as those set by the Financial Action Task Force (FATF), particularly concerning the "travel rule" which mandates the transmission of sender and receiver information for transactions above a certain threshold. In March 2022, SUNACRIP published Providence 054-2022, outlining guidelines for reporting suspicious activities related to Fintech, in line with FATF recommendations. More recently, following Venezuela's inclusion in the FATF's list of jurisdictions under increased monitoring in June 2024, the country has committed to strengthening its AML/CFT regime, which directly impacts financial institutions and companies dealing with crypto assets. * **Taxation:** Cryptocurrencies are generally treated as assets for tax purposes. While holding crypto itself might not be taxed, profits from selling it are typically subject to income tax. There have also been decrees mandating the recording of accounting information in Sovereign Cryptoassets (like the Petro), alongside Bolívars. * **Government Oversight and Interventions:** SUNACRIP plays a central role in supervising, monitoring, and regulating crypto activities. However, the institution itself has faced periods of uncertainty, including a prolonged audit and reorganization process initiated in March 2023 due to corruption scandals involving its former leadership. This reorganization period was extended and was expected to conclude around March 2024, with expectations for SUNACRIP to resume full operations. Despite these internal challenges, the overarching legal framework for crypto regulation remains in place. * **The Petro and its Demise:** While the Petro was a significant early focus of Venezuela's crypto strategy, it was officially shut down in January 2024 after facing numerous challenges, including corruption allegations and limited adoption. However, the broader legal framework for other cryptocurrencies remains. President Maduro has even called for a renewed embrace of cryptocurrencies following the Petro's suspension, suggesting a continued interest in leveraging digital assets. **Common Practices and Market Reality:** Despite the regulatory framework, the actual use of cryptocurrencies by individuals in Venezuela is also heavily influenced by the country's economic situation. Citizens have turned to cryptocurrencies, particularly stablecoins, as a hedge against hyperinflation, for receiving remittances, and for conducting everyday transactions. Peer-to-peer (P2P) platforms are popular, often used with pseudonyms. While "we accept crypto" signs may have become less prevalent in physical stores following government crackdowns and scandals, the underlying use of digital currencies persists, often in a more discreet manner. The economic crisis has, in many ways, driven grassroots adoption of cryptocurrencies as a practical financial tool. **Nuances and Complexities:** The regulatory environment, while established, has been described as a "gray area" at times, with instances of unclear tax implications in practice and past crackdowns on miners despite a formal legalization of mining (which was later reportedly banned in 2024 after previously being legalized and regulated). The restructuring of SUNACRIP also introduced a period of uncertainty for the industry. Furthermore, U.S. sanctions have targeted Venezuela's attempts to use cryptocurrencies to bypass international financial restrictions, particularly concerning the Petro. However, the fundamental legal basis permitting individuals to buy, sell, and hold cryptocurrencies, subject to SUNACRIP's regulations (including KYC/AML for VASPs), remains. The ongoing efforts to strengthen AML/CFT measures, as per FATF recommendations, further underscore the regulated nature of the space, even if enforcement and clarity on all aspects continue to evolve. In conclusion, retail cryptocurrency trading in Venezuela is legally permitted and subject to a regulatory framework overseen by SUNACRIP. This includes licensing for service providers and AML/KYC requirements. While the practical application and enforcement of these regulations have faced challenges and periods of uncertainty, the underlying legal status is one of being "Allowed-Regulated." **Specific, Relevant Text Excerpts:** * **Elliptic (April 5, 2023):** "In Venezuela, cryptoassets are legal, and regulations allow business models to be developed around these technologies... There are anti-money laundering regulations and government agencies in charge of regulating the use of these technologies. In addition, some licenses must be obtained to provide exchange brokerage services or to mine cryptocurrencies." * **Norton Rose Fulbright (referencing the Constituent Decree on Cryptoassets):** "The Cryptoassets Constituent Decree is the general legal framework formally and explicitly allowing the creation, circulation, use and exchange of cryptoassets, by individuals and legal entities of the public and private sectors, residents or non-residents of Venezuela..." (Similar statements in) * **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. AML/KYC Obligations. AML/KYC compliance is presumed to correlate well with global standards, but public enforcement procedures have no lengthy details." * **Bitcoin.com News (May 3, 2021, regarding SUNACRIP's AML/KYC rules):** "Last week, the Superintendence of Crypto Assets and Linked Activities of Venezuela (Sunacrip), quietly published a new set of rules that aim to tighten the KYC/AML requirements this institution requires from Virtual Asset Service Providers that offer these services on Venezuelan soil." * **InterJuris (referencing the Constituent Decree on Cryptoassets):** "El Decreto Constituyente sobre Criptoactivos y la Criptomoneda Soberana Petro... establece las bases para la creación, circulación, uso e intercambio de criptoactivos en Venezuela, por parte de las personas naturales y jurídicas, publicas y privadas, residentes o no en el territorio de la República Bolivariana de Venezuela..." (Translation: "The Constituent Decree on Cryptoassets and the Sovereign Cryptocurrency Petro... establishes the bases for the creation, circulation, use and exchange of cryptoassets in Venezuela, by natural and legal persons, public and private, resident or not in the territory of the Bolivarian Republic of Venezuela...") * **Didit (November 21, 2024):** "The KYC and AML legal framework in Venezuela is strongly influenced by its recent inclusion in the FATF's list of jurisdictions under increased monitoring on June 28, 2024. In response, the country has established a high-level political commitment to work with FATF and CFATF in strengthening its AML/CFT regime, resulting in a significant update of its regulatory structure." * **Crixto.com (License issued January 9, 2025):** Shows an example of a "LICENCIA DE FUNCIONAMIENTO PARA EL INTERCAMBIO" (Operating License for Exchange) issued by SUNACRIP to a crypto exchange, authorizing activities like exchanging fiat for crypto, crypto for fiat, P2P exchange, custody, and payment gateway services, under the supervision of SUNACRIP and in compliance with AML/CFT laws. **Direct, Accessible URL Links to Sources:** 1. **Elliptic - Venezuela Country Guide (April 5, 2023):** [https://www.elliptic.co/resources/country-guide-venezuela](https://www.elliptic.co/resources/country-guide-venezuela) 2. **Norton Rose Fulbright - Venezuela issues general legal framework on cryptoassets and the “petro” cryptocurrency (April 2018, referencing decrees from April 9, 2018):** [https://www.nortonrosefulbright.com/en/knowledge/publications/b43a9f3e/venezuela-issues-general-legal-framework-on-cryptoassets-and-the-petro-cryptocurrency](https://www.nortonrosefulbright.com/en/knowledge/publications/b43a9f3e/venezuela-issues-general-legal-framework-on-cryptoassets-and-the-petro-cryptocurrency) 3. **Norton Rose Fulbright - Venezuela dicta marco legal general en materia de criptoactivos y de la criptomoneda “Petro” (April 2018, referencing decrees from April 9, 2018, in Spanish):** [https://www.nortonrosefulbright.com/es-ve/knowledge/publications/b43a9f3e/venezuela-dicta-marco-legal-general-en-materia-de-criptoactivos-y-de-la-criptomoneda-petro](https://www.nortonrosefulbright.com/es-ve/knowledge/publications/b43a9f3e/venezuela-dicta-marco-legal-general-en-materia-de-criptoactivos-y-de-la-criptomoneda-petro) 4. **Coinfomania - Cryptocurrency Regulations in Venezuela (Updated April 16, 2025):** [https://coinfomania.com/cryptocurrency-regulations-in-venezuela/](https://coinfomania.com/cryptocurrency-regulations-in-venezuela/) 5. **Bitcoin.com News - Venezuelan Crypto Regulator Sunacrip Strengthens AML/KYC Requirements for Virtual Asset Service Providers (May 3, 2021):** [https://news.bitcoin.com/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/) 6. **InterJuris - Decreto Constituyente Sobre Criptoactivos y la Criptomoneda Soberana Petro (Referencing Gaceta Oficial Extraordinaria N° 6.370, April 9, 2018, in Spanish):** [https://interjuris.com/decreto-constituyente-sobre-criptoactivos-y-la-criptomoneda-soberana-petro/](https://interjuris.com/decreto-constituyente-sobre-criptoactivos-y-la-criptomoneda-soberana-petro/) 7. **Cointelegraph - ¿Cómo se regulan las criptomonedas en Venezuela? (November 19, 2019, in Spanish, referencing Gaceta Oficial No. 41.575, January 30, 2019):** [https://es.cointelegraph.com/news/how-are-cryptocurrencies-regulated-in-venezuela](https://es.cointelegraph.com/news/how-are-cryptocurrencies-regulated-in-venezuela) 8. **BYDFi - ¿Qué es el rol de Sunacrip en el mundo de las criptomonedas? (Answers from Feb-May 2025, in Spanish):** [https://www.bydfi.com/es-ES/learn/crypto-insights/what-is-the-role-of-sunacrip-in-the-world-of-cryptocurrencies](https://www.bydfi.com/es-ES/learn/crypto-insights/what-is-the-role-of-sunacrip-in-the-world-of-cryptocurrencies) 9. **Lega.law - Decreto Constituyente sobre el sistema Integral de Criptoactivos (Referencing Gaceta Oficial N° 41.575, January 30, 2019, in Spanish):** [https://lega.law/decreto-constituyente-sobre-el-sistema-integral-de-criptoactivos/](https://lega.law/decreto-constituyente-sobre-el-sistema-integral-de-criptoactivos/) 10. **Didit - Identity Verification, KYC and AML Compliance in Venezuela (November 21, 2024):** [https://didit.com/blog/kyc-aml-compliance-venezuela/](https://didit.com/blog/kyc-aml-compliance-venezuela/) 11. **KPMG - La Superintendencia Nacional de Criptoactivos (SUNACRIP) publica la Providencia 054-2022 dirigida a las Fintech (March 24, 2022, in Spanish):** [https://kpmg.com/ve/es/home/insights/2022/03/sunacrip-publica-la-providencia-054-2022.html](https://kpmg.com/ve/es/home/insights/2022/03/sunacrip-publica-la-providencia-054-2022.html) 12. **EL PAÍS English - The new gray-area dollar in Venezuela is digital (January 4, 2025):** [https://english.elpais.com/economy-and-business/2025-01-04/the-new-gray-area-dollar-in-venezuela-is-digital.html](https://english.elpais.com/economy-and-business/2025-01-04/the-new-gray-area-dollar-in-venezuela-is-digital.html) 13. **Cointelegraph - Venezuela prorroga hasta marzo de 2024 la paralización para reorganizar Sunacrip (September 26, 2023, in Spanish):** [https://es.cointelegraph.com/news/venezuela-extends-sunacrip-reorganization-paralysis-until-march-2024](https://es.cointelegraph.com/news/venezuela-extends-sunacrip-reorganization-paralysis-until-march-2024) 14. **Crixto.com - SUNACRIP License (Issued January 9, 2025, Valid until December 31, 2025, in Spanish):** [https://crixto.com/sunacrip/](https://crixto.com/sunacrip/) 15. **Wilson Center - Crypto in Venezuela: Two Sides of a Coin (April 1, 2024):** [https://www.wilsoncenter.org/blog-post/crypto-venezuela-two-sides-coin](https://www.wilsoncenter.org/blog-post/crypto-venezuela-two-sides-coin) 16. **Bitcoinworld on Binance Square - Venezuelan President Maduro Calls for Renewed Embrace of Cryptocurrency After Suspending Petro Token (September 3, 2024):** [https://www.binance.com/en/feed/post/2024-09-03-venezuelan-president-maduro-calls-for-renewed-embrace-of-cryptocurrency-after-suspending-petro-token-1875050080811](https://www.binance.com/en/feed/post/2024-09-03-venezuelan-president-maduro-calls-for-renewed-embrace-of-cryptocurrency-after-suspending-petro-token-1875050080811) 17. **Chainalysis - 2024 LATAM Crypto Adoption: The Rise of Stablecoins (October 9, 2024):** [https://www.chainalysis.com/blog/2024-latam-crypto-adoption-report/](https://www.chainalysis.com/blog/2024-latam-crypto-adoption-report/) 18. **Central Banking - Venezuela shuts down state cryptocurrency (January 23, 2024):** [https://www.centralbanking.com/fintech/crypto-assets/7960851/venezuela-shuts-down-state-cryptocurrency](https://www.centralbanking.com/fintech/crypto-assets/7960851/venezuela-shuts-down-state-cryptocurrency) 19. **Forbes - Venezuela’s Crypto Rebirth: Interview With Enrique De Los Reyes (March 6, 2024):** [https://www.forbes.com/sites/zengernews/2024/03/06/venezuelas-crypto-rebirth-interview-with-enrique-de-los-reyes/](https://www.forbes.com/sites/zengernews/2024/03/06/venezuelas-crypto-rebirth-interview-with-enrique-de-los-reyes/) 20. **CryptoSlate - Crypto Usage Grows in Venezuela Despite Government Mismanagement (August 8, 2024):** [https://cryptoslate.com/crypto-usage-grows-in-venezuela-despite-government-mismanagement/](https://cryptoslate.com/crypto-usage-grows-in-venezuela-despite-government-mismanagement/) 21. **AméricaEconomía - How has the use of cryptocurrencies evolved in Venezuela since Maduro came to power? (August 15, 2024):** [https://www.americaeconomia.com/negocios-e-industrias/como-ha-evolucionado-el-uso-de-criptomonedas-en-venezuela-desde-la-llegada-de](https://www.americaeconomia.com/negocios-e-industrias/como-ha-evolucionado-el-uso-de-criptomonedas-en-venezuela-desde-la-llegada-de) 22. **Caracas Chronicles - Myths and Realities of Venezuela’s Crypto Regulations (November 5, 2020):** [https://www.caracaschronicles.com/2020/11/05/myths-and-realities-of-venezuelas-crypto-regulations/](https://www.caracaschronicles.com/2020/11/05/myths-and-realities-of-venezuelas-crypto-regulations/) 23. **Proelium Law - Cryptocurrency Regulation Tracker (Accessed June 2024, "Hostile" classification seems outdated given other sources but notes crackdowns and Petro issues):** [https://www.proeliumlaw.com/cryptocurrency-regulation-tracker/](https://www.proeliumlaw.com/cryptocurrency-regulation-tracker/) 24. **Congress.gov - Venezuela: Overview of U.S. Sanctions Policy (June 4, 2025):** [https://crsreports.congress.gov/product/pdf/IF/IF10715](https://crsreports.congress.gov/product/pdf/IF/IF10715) 25. **CCN.com - Venezuela Turns to Crypto as Citizens Battle Inflation and Instability (December 31, 2024):** [https://www.ccn.com/news/venezuela-turns-to-crypto-as-citizens-battle-inflation-and-instability/](https://www.ccn.com/news/venezuela-turns-to-crypto-as-citizens-battle-inflation-and-instability/)
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Sources discovered via web search grounding
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