Venezuela approves Petro and Cryptocurrency Exchange Platforms

The Government of Venezuela has approved the constitutional decree Petro, intended to lay the foundations for the creation, circulation and use of these alternative mechanisms in financial and commercial activities.

The law, presented in March by the Vice President, Tarek El Aissami, defines the powers of the State for the creation and management of cryptocurrency as well as the sovereign character of the Petro.

With this law, consisting of 12 articles, the use of cryptocurrencies is guaranteed between natural persons and legal entities, both in the public and private sectors, in the management of goods and services.

The decree confers power on the State for the use and regulation of cryptocurrencies, facilitating the creation of instances, such as exchange platforms and the creation of cryptocurrencies.

The development of cryptocurrencies in the country also includes the obligation to publish the so-called white paper, a document that establishes the objectives and bases of the mechanism to be created.

Article 5 of the decree defines Petro as “sovereign cryptocurrency, approved and issued by the Bolivian Republic of Venezuela, exchangeable with goods and services and fiat money, national and international exchanges”.

With this cryptocurrency seeks to promote an independent and open digital citizen economy participation in order to promote a new economic ecosystem based on trust, integrity, transparency, efficiency and speed that ensures the technology.

In this regard, the creation of virtual currency exchange platforms and the registration of digital miners as well as other entities dedicated to the exchange of appropriately regulated cryptocurrencies have been approved.

Public bodies will have 120 days, from the publication of the decree in the Official Gazette, to adapt to the use of said cryptocurrency.