The government of Venezuela has made a decree that will affect how cryptocurrencies are sent and received in the country. In this case, a limit has been placed on Petro’s amount which can be transacted in a month. A fee has also been imposed on cryptocurrency payments, reports a media outlet on February 12.
Venezuelan Government Publicizes Decree in Gaceta Official
Reportedly, the Venezuelan’s government decree was publicized on Gaceta Official on February 7. It imposes a fee on virtual currencies that individuals and legal entities can send and receive. Moreover, the National Superintendency of Crypto Assets and Related Activities (SUNACRIP) has been saddled with the duty of levying taxes on such trades.
Based on the decree, an individual who remits a cryptocurrency is liable to pay a minimum of $0.28 or 0.25 euros. The maximum fee that can be charged per trade is 15 percent for each transfer.
Petro Digital Currency is Also Affected by the Government’s Decree
Furthermore, the decree also affects Petro, the country’s digital currency. Here, the maximum amount of Petro that can be transacted in a month is 10, valued at around $600. However, if there is a need to exceed this limit, approval has to be granted by SUNACRIP. Thus, the total Petro that can be remitted is 50, valued at about $3,000.
The media has also noted that the government has not pointed out how these trades will be controlled and monitored especially in the area of other cryptocurrencies asides from its Stablecoin, Petro. Nonetheless, it can be expected that taxes will be imposed with the use of a technology-based platform.
Regarding the publication on Twitter, users of the platform have made comments. Some outlined that the government is trying to regulate a market that was meant to be the opposite. Another pointed out that the launch of petroleum could help to stabilize the country’s economy.
Hike in Bitcoin Trading Volume in Venezuela
BTCNN on February 7 made reference to LocalBitcoins data which revealed a hike in the Bitcoin trading volume in the country. The spike was attributed to the inflation in the country which has increased by 1 million percent. It has also made the country’s fiat devalue and as such, people are relying more on Bitcoin to transact.
A similar event was reported on January 7, of the South America country being among the top nations that are trading Bitcoin. It was competing with the U.S., U.K., China, and Nigeria. Although the latter experienced a decline in its trading volume in 2018, Venezuela recorded an increase. According to Longhash, there was a 63.7% increment in Bitcoin trades in the country.