Venezuelan government proposes new legal framework for cryptocurrencies

With the falling value of the bolivar, the national currency of Venezuela, President Nicolás Maduro is turning to cryptocurrencies as a means to save the economy. He recently proposed that the Petro, Venezuela’s native cryptocurrency supposedly backed by oil and mineral reserves, be used to replace the beleaguered bolivar. The government has since unveiled a set of regulations that would govern cryptocurrencies within the context of the Venezuelan economy.

Venezuela’s official gazette has published “Constituent Decree on the Integral System of Crypto Assets” which outlines a legal framework for crypto assets. The 63-article long document aims to create and define regulations that would govern the Internal System of Crypto assets to ensure the functionality of the Venezuelan economy. The decree hopes to provide harmonious coordination of the country based on financial innovation.

It also discusses penalties for different infractions. Dealing with cryptocurrencies without necessary authorisation will be given a fine equivalent to 100 to 300 sovereign crypto assets. Meanwhile, those accused of tampering with or destroying the system might even face between one and three years in prison.