Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Binance Users Could Face Sanctions in Venezuela

Cryptocurrency Jun 01, 2022 11:30AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
Binance Users Could Face Sanctions in Venezuela

  • Users of crypto exchanges and other related platforms in Venezuela could face fines of up to $15,000 USD.
  • The local regulator has said the government is complying with the recommendations of the Financial Action Task Force (FATF).
  • Binance is one of the most used platforms by residents of the South American country, but it does not yet have an operating license.

The National Superintendency of Cryptoactives (Sunacrip) in Venezuela announced new guidelines in relation to reports of suspicious activity on crypto exchanges and other platforms, as outlined by the National Financial Intelligence Unit in a recently published ruling.

The series of regulations, though they have not yet been passed into law, establish guidelines that must be followed by all users and companies in Venezuela that utilize exchanges, digital wallets, or any other unauthorized cryptocurrency trading platforms.

According to ruling 054, those who fail to comply with these rules could face sanctions due to “lack of authorization”, as outlined in the Constituent Decree on the Comprehensive Crypto Active System.

The Sunacrip regulations include recommendations made by the Financial Action Task Force (FATF) in relation to the fight against money laundering, terrorism financing, and the proliferation of weapons of mass destruction through the use of digital assets and fintech.

FATF Recommendations

The regulator makes reference to the recommendations issued by the FATF on the use of new financial technologies. the document states:

“Countries and financial institutions should identify and assess money laundering or terrorist financing risks that may arise with respect to (a) the development of new products and new business practices, including new delivery mechanisms, and (b) the use of new technologies or technologies under development for both new and existing products.” It further underlines that “to manage and mitigate the risks arising from virtual assets, countries should ensure that virtual asset service providers are regulated for AML/CFT purposes, and are licensed or registered and subject to effective monitoring systems.” Platforms subject to regulatory compliance include crypto exchanges, virtual wallets, and P2P trading platforms, as well as the developers of smart contracts, ATMs, virtual prepaid cards, contactless solutions, big data services, cloud computing, and artificial intelligence, among others.

Users and Companies Warned of Sanctions

The measures instated by Sunacrip could affect Venezuelan users of leading crypto exchange Binance, which is one of the most used in the country, despite the fact that the platform’s operations in the country are not yet approved by regulators. Even so, Binance P2P acts as an important reference to determine the parallel exchange rate of the Venezuelan bolivar to the U.S. dollar.

Another exchange platform with significant user volume in Venezuela is LocalBitcoins, which competes with Binance and other service providers.

Regarding the sanctions that may be levied against violators of the new regulations, article 42 of the Constituent Decree on the Comprehensive Cryptoactive System establishes that "those who operate or carry out any type of activity related to the constitution, issuance, organization, operation and use of Crypto assets or sovereign crypto assets, including mining, without the proper authorization of the governing body will be sanctioned with a fine”. The amount of the fine would range between 100 and 300 petros (approximately USD 15,000), the digital currency issued by the Venezuelan government. Additionally, the Sunacrip regulations stipulate that those who "use social networks to promote, or promote scams with the use of crypto actives, would also be investigated for suspicious activities."

Continue reading on DailyCoin

Binance Users Could Face Sanctions in Venezuela

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email