Venezuela's Cryptocurrency Landscape: Legal Framework and Regulatory Oversight

Cryptocurrency is legal in Venezuela and operates within a government-established regulatory framework. In 2018, the Venezuelan government enacted the Constituent Decree on Cryptoassets, which formally recognized the creation, circulation, and use of cryptoassets, including the state-backed cryptocurrency known as the Petro. This decree empowers the National Executive to regulate the cryptoasset market, authorize virtual exchanges, and oversee activities such as virtual mining and the use of digital wallets. To enforce these regulations, the government established the Superintendence of Cryptoassets and Related Activities (SUNACRIP), responsible for supervising and controlling cryptoasset-related activities in the country.

The Venezuelan government's approach to cryptocurrency includes promoting its use in both public and private sectors. The Constituent Decree indicates that the state will "promote, protect, and guarantee the use of cryptocurrencies as a medium of payment at state institutions and private, mixed, or jointly owned entities." This policy aims to integrate cryptocurrencies into the national economy and encourage their adoption across various sectors.

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, including in particular the cryptocurrency known as the 'petro (1).

Despite the legal framework supporting cryptocurrencies, Venezuela's approach has faced criticism and challenges. The Petro, in particular, has been controversial, with concerns about its backing and transparency. Additionally, the U.S. government has imposed sanctions related to Venezuela's digital currency activities, prohibiting transactions involving the Petro by U.S. persons. These sanctions aim to prevent the Venezuelan government from circumventing financial restrictions through the use of state-backed cryptocurrencies.

Source:
(1) Norton Rose Fulbright
(2) U.S. Department of State

Last updated: 08-05-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.