Crypto Remittances Regulation Begins In Venezuela

Crypto Remittances Regulation Begins In Venezuela

Venezuelans will begin to pay a maximum of 15% commissions of transaction amount after the government started to regulate Crypto remittances. The country’s Crypto regulator The Sunacrip (National Superintendency of Crypto Assets and Related Activities), announced the new directive on Friday. However, some people have criticized the move on Twitter claiming that it does not promote the adoption of digital assets.

Crypto Remittances Come Under Regulation

The new regulation for Crypto remittances in Venezuela has come into force. The country’s regulator of the Crypto sector Sunacrip, made this announcement on Friday. This regulation’s decree has already been published in oil-rich nation’s Official Gazette No. 41.581.

The new regulation is clear on the conditions and procedures for sending and receiving Cryptocurrencies for people living in the country. Under the new law, the senders will be required to pay a maximum of 15% of the total of remittance to Sunacrip. The minimum financial commission that one can pay is 0.25 euros [~$0.28] per transaction.

The decree also gives Sunacrip more powers with regard to Cryptocurrency regulation. According to a local news outlet, Criptonoticias, the regulator will request for all information about the sender and receiver of Crypto assets. Sunacrip will also specify the tariffs and the value of Cryptocurrencies in the local currency. Furthermore, the regulator will also establish remittance limits.

According to the publication, the monthly minimum for sending remittances has been set at 10 Petros (PTR), which is about the US $600. Sunacrip endorsement will be required to authorize any transaction beyond this limit but up to 50 PTR ($3,000). Petro is the Venezuelan national Cryptocurrency, which is backed by the country’s mineral resources such as oil and gold among others.


Reaction To New Regulation

After Sunacrip made this announcement, many people took to social media, especially Twitter to express their reaction. Some termed the new regulation as the most ludicrous thing they have ever seen. Some claimed that instead of promoting Cryptocurrencies, the government is now trying to centralize the sector, which opposite of what the technology is designed for. It appears the decree has not gone so well with the public.

Sunacrip To Become Increasingly Involved

The Venezuelan government is now enacting rules on the Cryptocurrency service registry after the publication of the decree. On Feb. 5, Ramirez Joselit, the Superintendent of Sunacrip said that with the publication of the “Integral Registry of Services in Crypto Assets [Risec]” into Official Gazette Number 41.578, it has now entered into force.

The Ministry of Popular Power for Communication and Information has opened the registration of any person or organization of the People’s Power planning to engage in activities linked to the Integral System of Crypto Asset. Risec will be responsible for the systemization of the Integral System of Crypto Assets user’s information such as identity. Risec will be operating under Sunacrip. The regulator will be responsible for creating a unit that will update, monitor, and verify updating of Risec’s data.

Last year, Venezuela became the first country to have a national Cryptocurrency after the launch of Petro. Since then, the government has been trying to put the right regulations in place to enable the country to use the technology. The government is optimistic that the new currency will enable it to circumvent the economic sanctions imposed by the US and close allies.

February 12, 2019

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Samantha Mitchell