Venezuela expands the restructuring of the cryptocurrency regulatory body

Extension of the reorganization of the supervisory body of criptomonedas in Venezuela

The Venezuelan government has announced a six-month extension for the reorganization of its National Superintendency of Crypto Assets, which effectively ceased operations in March 2023. This decision was made by the president and published in a presidential decree on September 19. The new extension period began on September 17 and will last until March 24, 2024.

Background of the closure of the superintendent

The superintendency was closed in March 2023 following a corruption scandal involving its former senior management. This incident led to the arrest of at least ten people, including its leader. Prosecutors accused the leader of embezzling more than 3 million dollars in state funds during his tenure at the superintendency.

Impact on the Venezuelan Crypto Industry

The closure of the regulatory body caused chaos in the cryptocurrency industry in Venezuela, which is closely linked to the State. As a result, cryptocurrency mining facilities were shut down in several states, and some exchange platforms were ordered to cease their operations.

Function and Relevance of the Superintendency

Established in 2018, the superintendent was responsible for overseeing all business activities related to cryptocurrencies in Venezuela. Its competencies included the creation, issuance, transfer, marketing, and exchange of all crypto assets in the country. That same year, Venezuela launched a cryptocurrency backed by oil, with settlement expected in the summer of 2023, although its official website continues to operate to this day.

Future Perspectives

The extent of the reorganization suggests that the Venezuelan government is carefully considering the future of cryptocurrency regulation in the country. This decision could have significant implications for the use of cryptocurrencies in Venezuela and their role in the national economy.