Crypto Miners and Bitcoin Exchanges Required to Register for Operations in Venezuela Now

Every country in the world is working to establish their rules on cryptocurrency, adjusting as the crypto industry evolves even more. Very few actually have their regulations completed, but Venezuela is working towards the completion of their own. In a recent announcement, they have imposed a new law that requires crypto miners and crypto exchanges to register.

An official gazette was published by the Ministry of Popular Power for Communication and Information (MIPPCI) was published in Venezuela last week. In the publication, the official regulatory framework was made live, which means that the businesses working with cryptocurrency at all need to get registered with Sunacrip. Sunacrip is in charge of crypto-related activities in the area and will now be in charge of the registration requirements and the necessary process.

Anyone that does not register their businesses for operation will have a charge of anywhere from 100 to 300 Petros assessed to them, which is the national currency. However, increasing the regulations within Venezuela officially makes the regulator the highest crypto authority in the country. Their powers cover major issues like the invocation of certain plans and rule and cover all the way down to the daily oversight of the industry.

Presently, there are 63 articles in the decree, which offers details about the definitions of various terms, the business registration requirements, penalties, and other information. With its power, Sunacrip will also be responsible for the auditing and inspection of crypto companies. If the platforms do not comply with the local laws, their registration and licensing may be at risk of revocation. Furthermore, the non-compliant firms could be jailed for up to three years and fined up to 100 Petros. As a result of the direct actions against the regulations, there is also a chance of forfeiting mining rigs at that point.

Though details are still being worked out, there is a chance that the government will end up limiting the number of exchanges that they allow to register and operate in their country. Venezuela has become one of the only countries to decide to launch a national crypto asset, which is governed by local authorities. U.S. President Donald Trump subsequently blocked the use of the Petro within his country in March last year.

In the meantime, Nicolas Maduro has continued to force the country to be willing to adopt the Petro, backed by oil in Venezuela. He even stated that the country would use Petros directly for oil sales, which was meant to go into effect sometime this year. This decision came after Maduro intended to establish the token as the “digital currency for oil.” Venezuela has also started using the Petro to cover pension and salaries, selling to the public directly from a government portal online.