Venezuela
Retail_Trading_Status
Status Changed
Previous status: Gray-Zone
Reconciled from live analysis after human review confirmed status as Allowed-Regulated. Original new analysis incorrectly classified as Gray-Zone. The legal framework explicitly allows retail trading, and the existence of a regulator (even if currently non-operational) and specific laws (e.g., tax, AML) confirm a regulated environment. The temporary paralysis of SUNACRIP and the mining ban do not change the fundamental legal status of retail trading. The correct status is 'Allowed-Regulated' as the activity is legally permitted within a defined regulatory framework, despite current enforcement challenges.
- Analysis ID
- #878
- Version
- Latest
- Created
- 2025-12-13 07:34
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- 3ab38fa4...
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- Reconciled
Executive Summary
Retail cryptocurrency trading is legally permitted in Venezuela and operates under a formal regulatory framework. The Constituent Decree on the Integral System of Cryptoassets (SIC) explicitly allows the creation, circulation, use, and exchange of cryptoassets. The National Superintendency of Cryptoassets and Related Activities (SUNACRIP) oversees crypto activities, requiring licensing for exchanges and miners, and enforcing AML/KYC compliance for Virtual Asset Service Providers (VASPs). However, since March 2023, SUNACRIP has been under restructuring following corruption scandals, creating a period of regulatory uncertainty and temporary paralysis of its licensing functions. Additionally, cryptocurrency mining was banned in May 2024 to protect the national grid. Despite these challenges, the underlying legal framework remains intact, and retail trading continues with high adoption, particularly of stablecoins, driven by hyperinflation and economic necessity.
Key Pillars
- Primary Regulator: The National Superintendency of Cryptoassets and Related Activities (SUNACRIP) is responsible for supervising, monitoring, and regulating crypto activities. Since March 2023, SUNACRIP has been under restructuring (per Decree No. 4.788), temporarily paralyzing its licensing and active oversight functions.
- Core Compliance Requirements: Anti-Money Laundering (AML) and Know-Your-Customer (KYC) obligations are mandated for Virtual Asset Service Providers (VASPs). SUNACRIP's Providence 054-2022 outlines guidelines for reporting suspicious activities.
- Licensing/Registration: 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). The licensing process is currently on hold due to SUNACRIP's restructuring.
- Tax Authority: The National Integrated Service for the Administration of Customs and Duties (SENIAT) enforces tax collection on crypto transactions, including the Large Financial Transactions Tax (IGTF).
- Mining Regulation: The Ministry of Electric Power enforces the ban on cryptocurrency mining farms, which were disconnected from the national grid in May 2024.
- Banking Oversight: The Superintendency of the Institutions of the Banking Sector (Sudeban) oversees banking integration, which remains restricted and volatile for crypto-related transactions.
Landmark Laws
- Constituent Decree on the Integral System of Cryptoassets (SIC) (Official Gazette No. 41.575, enacted January 30, 2019): 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.
- Presidential Decree on SUNACRIP Restructuring (Decree No. 4.788, Official Gazette Extra. No. 6.739, enacted March 17, 2023): Ordered the intervention and restructuring of SUNACRIP following corruption allegations, effectively freezing its regulatory functions.
- Law on Tax on Large Financial Transactions (IGTF Reform) (Official Gazette Extra. No. 6.687, enacted February 25, 2022): Imposes a tax of 3% to 20% on transactions made in foreign currency or cryptoassets not issued by the Venezuelan state (i.e., Bitcoin, USDT) within the national banking system.
Considerations
- Legal Classification: Cryptocurrencies are generally treated as assets for tax purposes.
- Tax Treatment: Profits from selling crypto are typically subject to income tax. The Large Financial Transactions Tax (IGTF) applies to transactions in foreign currency or non-sovereign cryptoassets within the national banking system.
- Known Risks/Concerns: The regulatory environment has been described as having "gray areas" due to the temporary paralysis of SUNACRIP, unclear tax implications in practice, and past crackdowns. U.S. sanctions have targeted Venezuela's attempts to use cryptocurrencies to bypass international financial restrictions.
- Operational Challenges: The use of cryptocurrencies is heavily influenced by Venezuela's economic situation, including hyperinflation. Citizens rely on cryptocurrencies as a hedge against inflation, for remittances, and for everyday transactions. Peer-to-peer (P2P) trading is prevalent, but banking integration is volatile.
- Regulatory Paralysis: Since March 2023, SUNACRIP has been under restructuring due to corruption scandals, leading to a temporary suspension of licensing and active oversight. This has created uncertainty for existing Virtual Asset Service Providers (VASPs).
- Mining Ban: In May 2024, the government banned cryptocurrency mining and disconnected all mining farms from the national grid to protect the power system, seizing thousands of mining devices.
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. The restructuring period has been extended repeatedly.
- 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. The current market is dominated by stablecoins like USDT and Bitcoin.
- State Cryptocurrency: The 'Petro' (PTR), Venezuela's state-backed cryptocurrency, was officially liquidated and discontinued in January 2024.
Remaining Uncertainties
- The definitive end date of the SUNACRIP restructuring process and whether a new regulator will replace it.
- The operational status of specific international exchanges (e.g., Binance) regarding direct integration with Venezuelan banks.
- Whether the rumored 'banking integration' for crypto services in Dec 2025 will materialize into a formal regulation.
Detailed Explanation
Detailed Explanation
Retail cryptocurrency trading is legally permitted and regulated in Venezuela. The foundational legal framework is the Constituent Decree on the Integral System of Cryptoassets (SIC), enacted on January 30, 2019, which explicitly allows the creation, circulation, use, and exchange of cryptoassets by both natural and legal persons. The primary regulatory authority is the National Superintendency of Cryptoassets and Related Activities (SUNACRIP), which is responsible for supervising, monitoring, and licensing crypto activities. However, since March 17, 2023, SUNACRIP has been under intervention and restructuring per Presidential Decree No. 4.788, following corruption scandals. This restructuring has led to a temporary paralysis of its licensing functions and active oversight, creating a period of regulatory uncertainty for the industry. Despite this paralysis, the underlying legal framework remains intact, and retail trading continues with high adoption, driven by hyperinflation and economic necessity, with stablecoins like USDT being particularly prevalent.
The core compliance requirements for Virtual Asset Service Providers (VASPs), such as exchanges, include Anti-Money Laundering (AML) and Know-Your-Customer (KYC) obligations, as outlined in SUNACRIP's Providence 054-2022. Licensing for exchanges, miners, and brokers is formally required, with miners needing to enroll in the Integral Miners Registry (RIM), but this process is currently on hold. The National Integrated Service for the Administration of Customs and Duties (SENIAT) enforces tax collection on crypto transactions, including the Large Financial Transactions Tax (IGTF) as reformed by the law published on February 25, 2022, which imposes a tax of 3% to 20% on transactions in foreign currency or cryptoassets not issued by the Venezuelan state within the national banking system. Profits from selling crypto are also typically subject to income tax. A major restriction was imposed in May 2024 when the government, through the Ministry of Electric Power, banned cryptocurrency mining and disconnected all mining farms from the national grid to protect the power system, seizing thousands of devices. Banking integration for crypto transactions, overseen by the Superintendency of the Institutions of the Banking Sector (Sudeban), remains restricted and volatile. The state-backed cryptocurrency, the Petro, was officially liquidated and discontinued in January 2024, though President Maduro has since called for a renewed embrace of cryptocurrencies.
Summary Points
I. Regulatory Status
* Retail cryptocurrency trading is Allowed-Regulated under a formal legal framework.
* The primary framework is the Constituent Decree on the Integral System of Cryptoassets (SIC).
* Since March 2023, the primary regulator, SUNACRIP, has been under restructuring, creating a period of regulatory uncertainty and temporary paralysis of its licensing functions.
II. Key Regulatory Bodies
* National Superintendency of Cryptoassets and Related Activities (SUNACRIP): The primary regulator for supervising, monitoring, and licensing crypto activities. Currently under restructuring (since March 2023), which has frozen its active oversight.
* National Integrated Service for the Administration of Customs and Duties (SENIAT): Enforces tax collection on crypto transactions.
* Superintendency of the Institutions of the Banking Sector (Sudeban): Oversees banking integration, which remains restricted for crypto-related transactions.
* Ministry of Electric Power: Enforces the ban on cryptocurrency mining (as of May 2024).
III. Important Legislation
* Constituent Decree on the Integral System of Cryptoassets (SIC) (Official Gazette No. 41.575, January 30, 2019): The primary legal framework that explicitly allows the creation, circulation, use, and exchange of cryptoassets.
* Providence 054-2022 (March 2022): Issued by SUNACRIP, outlining guidelines for reporting suspicious activities related to Fintech.
* Presidential Decree on SUNACRIP Restructuring (Decree No. 4.788) (Official Gazette Extra. No. 6.739, March 17, 2023): Ordered the intervention and restructuring of SUNACRIP, freezing its regulatory functions.
* Law on Tax on Large Financial Transactions (IGTF Reform) (Official Gazette Extra. No. 6.687, February 25, 2022): Imposes a tax of 3% to 20% on transactions in foreign currency or cryptoassets not issued by the Venezuelan state within the national banking system.
IV. Compliance Requirements
* Licensing/Registration: Entities like exchanges, miners, and brokers are required to obtain licenses and register with SUNACRIP. Miners must enroll in the Integral Miners Registry (RIM). This process is currently on hold due to SUNACRIP's restructuring.
* AML/KYC: Virtual Asset Service Providers (VASPs) are mandated to comply with Anti-Money Laundering and Know-Your-Customer obligations.
* Taxation:
* Profits from selling crypto are typically subject to income tax.
* The Large Financial Transactions Tax (IGTF) applies to qualifying crypto transactions within the banking system.
V. Notable Restrictions or Limitations
* Mining Ban: Cryptocurrency mining was banned in May 2024, and all mining farms were disconnected from the national grid to protect the power system.
* Banking Integration: Banking integration for crypto transactions is restricted and volatile.
* Regulatory Paralysis: The restructuring of SUNACRIP has created uncertainty and a temporary suspension of licensing and active oversight.
* U.S. Sanctions: U.S. sanctions have targeted Venezuela's attempts to use cryptocurrencies to bypass international financial restrictions.
VI. Recent Developments or Notes
* State Cryptocurrency: The state-backed 'Petro' (PTR) was officially liquidated and discontinued in January 2024.
* Future Plans: Following the Petro's suspension, President Maduro has called for a renewed embrace of cryptocurrencies.
* Market Practice: Peer-to-peer (P2P) trading is prevalent, and the market is dominated by stablecoins like USDT and Bitcoin, driven by hyperinflation and economic necessity.
* Historical Context: Venezuela's formal crypto regulation began with the creation of the Petro in 2018.
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 is legally permitted in Venezuela under the Constituent Decree on the Integral System of Cryptoassets (SIC), which explicitly allows the creation, circulation, use, and exchange of cryptoassets. The National Superintendency of Cryptoassets and Related Activities (SUNACRIP) was established as the primary regulator, tasked with licensing Virtual Asset Service Providers (VASPs) like exchanges and enforcing AML/KYC rules. SUNACRIP has issued operating licenses to exchanges and published Providence 054-2022 for suspicious activity reporting.
However, since March 2023, SUNACRIP has been under restructuring due to corruption scandals (Decree No. 4.788), freezing its licensing and active supervisory functions. This has created a period of regulatory uncertainty, but the underlying legal framework remains valid. Existing licensed exchanges continue to operate, and the government has not outlawed individual trading.
In May 2024, the government banned cryptocurrency mining to protect the national grid, seizing mining equipment. This ban is separate from retail trading. Taxation is enforced by SENIAT, including the IGTF on crypto transactions. Banking access for crypto remains volatile under Sudeban's oversight.
Despite regulatory paralysis, adoption is high. Venezuelans use stablecoins (USDT) and Bitcoin via P2P platforms to hedge against hyperinflation and receive remittances. The state-issued Petro was discontinued in January 2024.
In summary, retail trading is "Allowed-Regulated" because the legal framework permits it, even though the regulator is temporarily non-operational. The situation reflects a regulated market in a state of temporary suspension, not a legal gray zone.
Specific, Relevant Text Excerpts:
- Constituent Decree (2019): "The Integral System of Cryptoassets is composed of the set of principles, norms and procedures... to guarantee the incorporation of cryptoassets... in Venezuela."
- Decree 4.788 (2023): "Ordering the restructuring of the National Superintendence of Cryptoassets and Related Activities (SUNACRIP)."
- Ministry of Electric Power (2024): "The goal is to disconnect all cryptocurrency mining farms in the country from the national electrical system."
- Elliptic (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."
- Crixto.com License (2025): Shows an operating license issued by SUNACRIP to a crypto exchange, authorizing fiat-crypto trading.
Direct, Accessible URL Links to Sources:
[See Evidence Table below]
**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 is legally permitted in Venezuela under the Constituent Decree on the Integral System of Cryptoassets (SIC), which explicitly allows the creation, circulation, use, and exchange of cryptoassets. The National Superintendency of Cryptoassets and Related Activities (SUNACRIP) was established as the primary regulator, tasked with licensing Virtual Asset Service Providers (VASPs) like exchanges and enforcing AML/KYC rules. SUNACRIP has issued operating licenses to exchanges and published Providence 054-2022 for suspicious activity reporting. However, since March 2023, SUNACRIP has been under restructuring due to corruption scandals (Decree No. 4.788), freezing its licensing and active supervisory functions. This has created a period of regulatory uncertainty, but the underlying legal framework remains valid. Existing licensed exchanges continue to operate, and the government has not outlawed individual trading. In May 2024, the government banned cryptocurrency mining to protect the national grid, seizing mining equipment. This ban is separate from retail trading. Taxation is enforced by SENIAT, including the IGTF on crypto transactions. Banking access for crypto remains volatile under Sudeban's oversight. Despite regulatory paralysis, adoption is high. Venezuelans use stablecoins (USDT) and Bitcoin via P2P platforms to hedge against hyperinflation and receive remittances. The state-issued Petro was discontinued in January 2024. In summary, retail trading is "Allowed-Regulated" because the legal framework permits it, even though the regulator is temporarily non-operational. The situation reflects a regulated market in a state of temporary suspension, not a legal gray zone. **Specific, Relevant Text Excerpts:** - **Constituent Decree (2019):** "The Integral System of Cryptoassets is composed of the set of principles, norms and procedures... to guarantee the incorporation of cryptoassets... in Venezuela." - **Decree 4.788 (2023):** "Ordering the restructuring of the National Superintendence of Cryptoassets and Related Activities (SUNACRIP)." - **Ministry of Electric Power (2024):** "The goal is to disconnect all cryptocurrency mining farms in the country from the national electrical system." - **Elliptic (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." - **Crixto.com License (2025):** Shows an operating license issued by SUNACRIP to a crypto exchange, authorizing fiat-crypto trading. **Direct, Accessible URL Links to Sources:** [See Evidence Table below]
Source Evidence
Primary and secondary sources cited in this analysis
"The Integral System of Cryptoassets is composed of the set of principles, norms and procedures... to guarantee the incorporation of cryptoassets... in Venezuela."
"Ordering the restructuring of the National Superintendence of Cryptoassets and Related Activities (SUNACRIP)."
"The goal is to disconnect all cryptocurrency mining farms in the country from the national electrical system."
"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."
"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..."
"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."
"Shows a 'LICENCIA DE FUNCIONAMIENTO PARA EL INTERCAMBIO' issued by SUNACRIP, authorizing fiat-crypto exchange, P2P, custody, and payment gateway services."
"Sunacrip published a new set of rules that aim to tighten the KYC/AML requirements... from Virtual Asset Service Providers."
"The Venezuelan government ordered that the restructuring of SUNACRIP be extended for 6 more months."
"Authorities have seized over 11,000 bitcoin miners as the government seeks to reduce the power usage."
"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... the country has established a high-level political commitment to work with FATF... in strengthening its AML/CFT regime."
Web Sources (10)
Sources discovered via web search grounding
Search queries used (9)
- Is cryptocurrency trading legal in Venezuela 2025
- legal status of crypto exchanges in Venezuela 2025
- SUNACRIP restructuring board extension 2024
- Venezuela crypto mining ban 2024 current status
- Venezuela crypto regulation status 2024 2025 SUNACRIP intervention
- Venezuela large financial transactions tax crypto IGTF
- Gaceta Oficial Venezuela SUNACRIP restructuring decree 2023
- Constituent Decree on the Integral System of Cryptoassets Venezuela text
- Venezuela crypto tax law SENIAT 2025
https://www.elliptic.co/country-guides/venezuela
https://www.bancaynegocios.com/maduro-ordeno-reestructuracion-de-la-sunacrip-anabel-pereira-presidira-la-junta/
https://www.traviesoevans.com/travieso/en/constituent-decree-on-the-integral-system-of-cryptoassets-jan-30-2019/
https://steemit.com/taxes/@ali3377/the-implications-of-the-new-big-financial-transactions-tax-law-applied-in-venezuela
https://www.ainvest.com/news/venezuela-tightens-crypto-tax-enforcement-2025-2504/
https://www.ainvest.com/news/venezuela-tightens-crypto-tax-enforcement-2025-2504/
http://traviesoevans.com/wp-content/uploads/2020/10/alerta-Decreto-Constituyente-sobre-el-Sistema-integral-de-Criptoactivos-ingles-Enero-30-2019.pdf
https://www.nortonrosefulbright.com/en/knowledge/publications/fbd7fcbe/venezuela-issues-general-legal-framework-on-cryptoassets-and-the-petro-cryptocurrency
https://www.hklaw.com/-/media/files/insights/publications/2022/03/venezuelapublishesamendmenten.pdf?rev=65b75f74a3774218af6e13fcf37718e1&sc_lang=en&hash=FA7B6FD489D22C36B6EE1D0BCDCD9562
https://eldiario.com/2023/03/20/reestructuracion-de-la-sunacrip/