Venezuela Crypto Regulator Continues Crackdown Amid Reorganization

• President ordered a reorganization of the country’s crypto regulatory body.
• In past years, President Maduro advocated for the development of cryptocurrencies.

There seems to be nothing but negative news for the Venezuelan crypto sector since Superintendent of Cryptoassets Joselit Ramirez was arrested and President Nicolas Maduro ordered a reorganization of the country’s crypto regulatory body.

In a recent development, Venezuela’s National Superintendency of Cryptoassets “Sunacrip”—the country’s crypto regulator—ordered the shutdown of all cryptocurrency exchanges registered in Venezuela with the agency.

Anti-corruption Investigation

Venezuela’s National Association of Cryptocurrencies reported that such drastic measures are being taken as the country moves forward with an anti-corruption investigation that has so far severed the proverbial heads of Joselit Ramirez and his political protector Tareck el Aissami, the Minister of Energy and Petroleum.

In order to get feedback from Venezuelan crypto enthusiasts for the proposals that will be presented to the Sunacrip intervention board, Asonacrip has created a public survey.

The announcement that Sunacrip had ordered the shutdown of huge cryptocurrency mining farms operating in many states in Venezuela came just before the raid. In the states of Carabobo, Lara, and bolvar, Asonacrip has acknowledged the closure of mining farms.

Asonacrip has requested a review of these measures, stressing that the great majority of mining farms are fully operating and in accordance with all applicable regulations. In past years, President Maduro advocated for the development of cryptocurrencies as means to revitalize Venezuela’s economy, thus the latest turn of events signals a complete about-face.

Efforts to lessen the mistreatment of traders and miners who are seen as operators in the parallel currency market began around the time the government legalized crypto, developed its own official cryptocurrency (The Petro), formed a regulatory framework for mining, institutionalized the registration of crypto exchanges, and widely agreed on the legitimacy of cryptocurrencies.