Venezuela Allows Crypto Trading on Exchanges

Venezuela’s regulatory body, Sunaval, has cleared the way for brokerages to trade cryptocurrencies.

Specifically, Sunaval issued Circular No. 000014. This circular allows exchanges to offer investment products not classified as traditional securities.

These can be physical or intangible items of value like foreign currencies and cryptocurrencies.

Moreover, Sunaval has greenlit a new trading segment. Named “Market for Other Goods,” this section will host trades of these non-traditional assets.

Adriana Salazar, a Public Affairs Manager, says there are no immediate plans to include cryptocurrencies. She cites regulatory uncertainty as the reason for this hesitation.

Still, a Venezuelan law firm, LEGA Abogados, argues that the circular shows Sunaval wants to ease trading in these new types of assets.

This move breaks new ground in Venezuela, already known for mixing cryptocurrencies with its stock market since 2020.

Then, Sunaval approved an electronic exchange for trading various types of assets, including cryptocurrencies.

However, the country is facing regulatory confusion. Earlier this year, Venezuela’s government restructured the Superintendence of Cryptoassets, known as Sunacrip.

This came after a corruption scandal involving its former President, Joselit Ramírez.

Since then, Sunacrip has been mostly silent, causing uncertainty for users and companies in Venezuela’s cryptocurrency market.

Background

This move by Sunaval can be seen as a step towards financial diversification in Venezuela.

Historically, the country has faced economic challenges, including hyperinflation and sanctions.

Cryptocurrencies offer a way to circumvent these issues. However, there’s still regulatory ambiguity, making it a double-edged sword for investors and traders.

It’s also noteworthy that Venezuela was among the first nations to launch a state-backed cryptocurrency, the Petro.

This shows the country’s long-standing interest in digital assets.

Yet, Petro failed to gain significant traction, revealing the complexities of integrating cryptocurrencies into a national economy.

The recent Sunaval decision could possibly open doors for foreign investments in Venezuela.

However, the ongoing restructuring of Sunacrip and past corruption issues bring in a layer of risk and unpredictability.

Thus, while the move is progressive, its success will largely depend on how Venezuela navigates these challenges.

LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.