Venezuelan President Nicolas Maduro has announced a reform of the National Superintendency of Crypto Assets in an effort to increase the use of cryptocurrencies in the country. The March 15 regulation is an effort to improve the effectiveness of the regulatory body in monitoring the usage of cryptocurrencies in the country by standardizing its procedures.
As part of the new framework, the National Superintendency of Crypto Assets will be reorganized and rebranded as the National Authority for Crypto Assets and Related Activities. The organization will oversee and enforce rules for everything having to do with virtual currencies, from mining to trade to the application of blockchain technology.
In light of economic sanctions and hyperinflation, Maduro is taking this step to encourage the usage of cryptocurrencies in Venezuela. To avoid US sanctions and raise money for its faltering economy, Venezuela has started utilizing its own cryptocurrency, the Petro.
It is hoped that the new structure of Venezuela’s National Superintendency of Crypto Assets will make the country more amenable to the use of cryptocurrency. The new government body will be responsible for regulating the Petro and encouraging the use of other cryptocurrencies across Venezuela.
Maduro stated in a statement that the revamping of the National Superintendency of Crypto Assets was an attempt to bring the Venezuelan financial system into the current era and make it more accessible to the general public. Cryptocurrencies, he said, would help the country become less reliant on the US currency and other foreign currencies, which have taken a knock due to sanctions.
Cryptocurrency proponents in Venezuela applaud the move, seeing it as a positive development toward wider bitcoin adoption in the country. Yet, there are many who are wary about cryptocurrency due to security risks, such as the possibility of fraud and money laundering, and the lack of transparency and accountability around their use.
Despite these reservations, cryptocurrency adoption in Venezuela has been on the rise over the past few years, with many locals moving their assets to this alternative currency to shield it from the country’s hyperinflation. It is hoped that the new structure of the National Superintendency of Crypto Assets will both encourage greater use of cryptocurrencies in the country and inspire similar reforms elsewhere.