Could it be even worse? Venezuela introducing limitations for the crypto community

Seems like nothing could disturb and worsen the economic and political situation in Venezuela. After one of the current presidents of the country, Nicolás Maduro Moros, literally got Venezuela into poverty, he tried to separate the country from the outer world. It seemed that nothing will disturb the piece. But that is not how the things are now, aren’t they?

With the new president, Juan Gerardo Guaidó Márquez, the situation got even more messed up and fatigue. Now, approximately 90% of Venezuelans are living in poverty and face severe food, medicine, and electricity shortages. The country that holds 20% of the global oil reserves, has lost its main oil consumer, the United States. After Maduro decided to break diplomatic relationships with the USA, the country lost the partner that acquired 40% of the produced oil. But that is now what we are going to discuss, not today.

Cryptocurrency environment condition in Venezuela

The launch of an official cryptocurrency, Petro, with an active involvement of Maduro, took place on 20 February 2018. That was the date when the pre-sale of the coin started. The cryptocurrency was considered as some type of the ‘life vest’ that was supposed to improve the financial situation of the country, as well as fix the issues connected with the monetary sovereignty of Venezuela. Pretty impressive, huh?

What actually happened?

You might think that after the country introduces the crypto coin that is even supposed to be supported by the national mineral and oil reserves, the things are going to be changed for the best. Well, it usually does. But not in a case with Venezuela.

In that country, things are already messed up. Thus, no surprise, that after the coin was introduced, certain limitations were imposed on the cryptocurrency operations within the country.

The essence of the limitations imposed

Gazeta Oficial, the main media source in Venezuela, announced on February 7, 2019, that certain limitation will be implemented for the cryptocurrency remittance in the country.

According to the official documented presented, from now on the National Superintendency of Crypto Assets and Related Activities, or SUNACRIP, will control the flow of all incoming and outcoming crypto transactions and tax those accordingly. That will influence not only individual traders but the commercial ones as well.

The maximum taxed fee per transaction might reach 15%, and the minimum fee was announced to be 0.25 euros (or $0.28 accordingly). Moreover, you can transfer a maximum of 10 Petro per month, or $600. In case if the value of the transaction exceeds that amount, the above-mentioned SUNACRIP organization shall check its validity. However, still, the transaction cannot exceed a total sum of 50 Petro, or $3,000.

However, it is still unclear how the government plans to control decentralized cryptocurrencies like Bitcoin (BTC).

Notably, Bitcoin trading has surpassed its maximum in Venezuela during the last couple of months. That can be explained by both hyperinflation and presidential crisis taking place. Well, everything in that country can be explained by those lately.

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