Venezuela

The regulatory status of cryptocurrency in Venezuela is characterized by a stark contrast between its formal legal framework and the operational reality. Legally, the 'Constituent Decree on the Integral System of Cryptoassets' (2019) remains in force, explicitly recognizing cryptoassets and establishing SUNACRIP as the governing body. This decree theoretically allows for the licensing of exchanges, the operation of mining farms, and the use of crypto for payments. However, the institutional collapse of SUNACRIP in March 2023, following the 'PDVSA-Crypto' corruption scandal involving the embezzlement of oil revenues via crypto wallets, has rendered this framework largely dysfunctional.

Since the intervention of SUNACRIP, the Venezuelan government has adopted a restrictive and enforcement-heavy approach. The restructuring board, led by Anabel Pereira Fernández, has not issued new licenses or provided clear guidance for existing Virtual Asset Service Providers (VASPs). Consequently, many local exchanges have either ceased operations or continue to operate in a 'gray zone' without active supervision. The uncertainty was compounded in May 2024 when the Ministry of Electric Power announced a total ban on cryptocurrency mining to stabilize the national grid, leading to the seizure of over 11,000 mining devices and the disconnection of farms across the country.

Despite the regulatory freeze, retail adoption remains among the highest in the region. Venezuelans extensively use stablecoins (primarily USDT) and Bitcoin to hedge against the devaluation of the Bolivar and to facilitate remittances. Peer-to-peer (P2P) trading is the dominant mode of exchange, often facilitated by international platforms like Binance, although access to local banking rails for these transactions can be sporadic and subject to sudden blocks. The government tolerates this private usage as a necessary economic lifeline but strictly controls the intersection with the formal banking sector.

Taxation remains a key area of active enforcement. The reform of the Large Financial Transactions Tax (IGTF) law in 2022 explicitly includes cryptoassets not issued by the state (non-sovereign crypto) in its scope, imposing a levy of up to 20% (currently set lower in practice, often around 3%) on transactions. SENIAT, the tax authority, treats crypto assets as taxable property, and individuals are expected to declare gains. As of late 2025, while there are rumors of a potential reopening of banking channels for crypto to alleviate foreign currency shortages, the sector remains fundamentally 'Gray-Zone' due to the lack of a functioning regulator and the indefinite suspension of the formal licensing regime.