New Crypto Regulation Bill Approved In Venezuela, Validating Petro And Approving It For Purchases
Venezuela has been working to find a way to survive through the inflation that has been plaguing the economy. The Petro, a government-supported crypto asset, was brought in to help with this issue, but the regulatory measures in the industry have largely impacted its range of use. Luckily, the Constituent National Assembly of Venezuela recently brought in a new cryptocurrency regulation that has been approved, as of November 21st.
The new law includes 64 articles and five transitory provisions, which were originally proposed by Nicolas Maduro, the leader in Venezuela. The cryptocurrency will now be considered a unit of commercial exchange, which also allows goods and services to be purchased with it.
During this process, amendments to the anti-money laundering laws in place have also been approved by the Assembly. These rules now state that that foreign exchange operations can be carried with Petro by crypto exchanges.
The head of the special commission on crypto framework, Andres Eloy Mendez, noted that:
“These changes are meant to help with the “financial and commercial blockade” that are coming from the U.S. By allowing the Petro to thrive, Mendez believes that there is a way to get around sanctions and to create new business relationships. These changes would not be possible with any other asset, considering that the Petro is not controlled by Venezuela’s central bank.”
The Petro originally was listed in late October, though Google abruptly suspended the Petro digital wallet. Presently, the only way to purchase this crypto asset is through the official website and the country’s public offices. Maduro and the authorities have played a major role in the promotion of the token since its December 2017 announcement. In fact, by August, the nation’s president even suggested allowing salaries, goods, and services to be fulfilled with the Petro as payment.
The month before, Maduro said that they intended to use the Petro for international commercial transactions. However, the most recent announcement on the Petro was made by the head of Venezuela’s state oil company, Manuel Quevedo. Quevedo determined that the country be trading the token with the Organization of the Petroleum Exporting Countries (OPEC) in 2019.
Unfortunately, there are some news publications that believe that the state-backed cryptocurrency is no more than a “smoke curtain” to mask the failure of reviving the sovereign bolivar, like Wired magazine. Even Reuter’s believes that Petro has no backing, by oil or mining, and the Economic brought up the fact that no major crypto exchange in the world even lists Petro at this point.