The road ahead for the Venezuelan cryptocurrency is a troubled one. Today, one of the biggest exchanges of the world, Bitfinex, outed a statement on his official blog where it bans the Petro (the Venezuelan cryptocurrency) of being offered and traded in its platform. This happens even before the coin was traded.
Bitfinex cites its “limited utility” as one of the main reasons behind this resolution; but it also cites that it had no intention of offering it although. Another reason quoted is the Executive Order signed by POTUS Donald Trump, that forbids US citizens to trade with Venezuelan cryptocurrencies. The article affirms that:
The United States has prohibited U.S. persons from all transactions related to, provision of financing for, and other dealings in, any digital currency, digital coin, or digital token issued by, for, or on behalf of the GOV”
So, Bitfinex won’t list or transact Petros or any tokens related to the Venezuelan Government in the near future, or at least while the Executive Order is still in place.
The Petro has been plagued with criticism from its start; being conceived as an oil-backed ERC-20 Ethereum token, and then being changed to a NEM based token. The regulatory body of Venezuela, the National Assembly, has already declared it illegal because it acts like a digital bond, an instrument of debt; and every bond must be approved by the National Assembly before being issued.
The scandal came the last week when Time magazine published a report relating Putin’s nearest counselors with the idea of issuing the Petro, conceived as sort of a cryptoruble in alpha states. Now, more doors close for this initiative every day. Neither Bitfinex nor any other exchange will risk facing legal actions for a token with little trade value.