Legal Crypto In Venezuela

Venezuela In Focus - Legal and Practical Analysis of Cryptocurrency

Legality

Cryptocurrency is legal in Venezuela. It is regulated under the Cryptoassets Constituent Decree (2018) and under the oversight of the Superintendency of Cryptoassets and Related Activities (SUNACRIP). It is not legal tender, but is commonly used for acts of trade and generally taxable as part of the large financial transaction tax reform commission of 2022.

Regulatory Framework

Cryptoassets Edict (2018): Authorizes the issuance, use, circulation, and exchange of all types of cryptoassets, whether through the public or private sector. It makes the SUNACRIP the regulator and states that exchanges have to be licensed, as well as follow AML and KYC standards.

Big Financial Transactions Tax (2022): Taxes cryptocurrency transactions, including buying, selling, and earning, at rates that vary by the size of the transaction, to increase state revenue.

Petro Regulations: Are for the Petro, a state-issued cryptocurrency created in 2018 to circumvent sanctions and stabilize the national economy. It's also required in some areas like oil exports, but has been little-adopted because of distrust and a lack of infrastructure.

AML/CTF Measures: Register and report suspicious transactions to the SUNACRIP or ENR associated with CFT, in order to avoid it and in compliance with international standards, in the case of currency exchange and cryptography services.

Popular Exchanges and Methods

Centralised exchanges: Binance stands out as the leading exchange, not on account of its exchange facility per se but because of its peer-to-peer (P2P) trading capability. It offers a platform for trading of cryptocurrencies against bolivars or other fiat. Local exchange CriptoLago, which is regulated by the local SUNACRIP entity, facilitates the exchange of Petro and other cryptos.

P2P-trading: It is commonly used through Binance P2P, WhatsApp, Telegram, or similar apps, or directly from acquaintance. These exchanges commonly involve bolivars, Zelle, PayPal, or cash, and P2P has become one of the most popular ways to send remittances.

Stablecoins: After a series of devaluations, the bolivar is highly unstable, which makes stablecoins — Tether (USDT) and USD Coin (USDC) — popular as a hedge bet and a means to store value.

Crypto ATMs and LocalBitcoins.com: A sparse amount, with some in urban centres like Caracas for cash transactions.

DeFi Market

Adoption: A DeFi market is growing, and whether through platforms on the Ethereum blockchain, Binance Smart Chain, or Polygon, tech-savvy Venezuelans are finding ways to lend, borrow, and participate in yield farming. DeFi grants access to the global financial market by circumventing traditional banking limitations.

Regulatory Status: No defined DeFi regulation; falls under the wider cryptoasset regime, with anti-money laundering/counter-terrorist financing (AML/CTF) requirements. Regulatory uncertainty could mean future regulation.

Challenges: High transaction fees (e.g., Ethereum gas costs), poor WiFi, and low technical knowledge limit wider use.

NFT Market

Adoption: The NFT market is an early one, with Venezuelan artists and creators using platforms such as OpenSea and Rarible to monetize their digital art, music, or collectibles. Local NFT projects are small but proliferating.

Regulatory: Treatment of NFTs as a cryptoasset for tax and AML/CTF purposes, without bespoke regulation for their specific features.

Challenges: The high fees for transactions in the Ethereum network are a barrier to entry, as is inaccessibility to global payment systems and low income.

Key Regulations Table

Regulation	Description	Key Points
Cryptoassets Constituent Decree (2018)	Legalizes cryptoasset activities.	Establishes SUNACRIP; mandates AML/KYC.
Large Financial Transactions Tax (2022)	Taxes crypto transactions.	Applies to buying, selling, earning.
Petro Regulations	Governs state-backed Petro.	Tied to oil reserves; limited adoption.
AML/CTF Regulations	Prevents illicit crypto use.	Requires registration and reporting.

Useful Information for Users

• Choosing an Exchange: Binance is recommended for its P2P platform and international accessibility. CriptoLago is compatible with local compliance and Petro exchange operations.
• P2P Trading Tips: Use reputable services or friends to avoid fraud. Double-check payment options (e.g., Zelle, PayPal) before trading.
• How Stablecoins are Being Used: To save their savings in USDT/USDC to avoid bolivar devaluation. For security, use private wallets (like MetaMask or Trust Wallet).
• Tax Compliance: Comply with tax reform 2022 by reporting large transactions. For advice on crypto earnings, consult a local tax expert.
• DeFi Apps: Check out low-fee networks such as Binance Smart Chain or Polygon. Experiment with small investments to understand how DeFi works.
• NFTs: Use a platform such as OpenSea for global content reach. For smaller transactions, you should think about Polygon.
• Internet and Security: Have a reliable internet connection to participate in DeFi and NFT activities. Store assets in hardware wallets or safe software wallets.

Recent History (2024–2025)

More aggressive tax enforcement on cryptocurrency transactions. Rising use of cryptocurrencies for remittances and everyday spending. Rapid DeFi and NFT adoption in the face of infrastructure hurdles.