Venezuela’s cryptocurrency watchdog, Suncrypt, has issued a new internal providence that defines guidelines for dealing with reports of suspicious activity related to fintech platforms. The document states that the use of unauthorized platforms may constitute suspicious activity, which could lead to penalties of up to $15,000 for its customers.
Sunacrip publishes internal providence on fintech activities
Sunacrip, a Venezuelan cryptocurrency watchdog, is trying to have better control over the movements that Venezuelans use to fintech platforms using cryptocurrencies and other assets. The organization issued a new providence that establishes mechanisms for dealing with suspicious activities, including fintech platforms.
Providence, an internal document signed by the organization’s head Joselit Ramirez, seeks to incorporate various Financial Action Task Force (FATF) directives into its work procedures to detect money laundering and terrorism financing schemes. Venezuela is not currently part of the FATF, as the country faces international sanctions.
Internal Providence states that using unauthorized exchanges may be considered a warning sign that can be reported to the National Financial Intelligence Organization for investigation and approval. Although the memo does not indicate what penalties may be applied for these violations, another related law defines sanctions for using crypto assets without authorization, establishing penalties of up to $15,000.
Blocking Crypto Adoption
This new set of measures may affect users of some exchanges such as Binance, which, despite being very widely used by the crypto community in the country, lack official registration and authorization with the institution. Users of the exchange can flee to other platforms to avoid these restrictions. Other popular exchanges in the country are also not on the list of authorized exchanges.
In January, Sunacrip revoked the licenses of the two exchanges and notified those that were authorized by the organization, omitting some important names such as Binance. At the time, Ramirez asked users to refrain from using these unauthorized exchanges.
But it is not only cryptocurrency exchanges that are affected by this regulation. Fintech platforms and fiat exchange services operating in the country will also be included under the purview of this provision.
Ral Velasquez, a Venezuelan lawyer and cryptocurrency enthusiast, said that the National Financial Intelligence Unit has the faculty to handle the information it needs from crypto institutions as well as banks. “The survey is likely to be done exclusively on Fiat on and off-ramp. However, it is very costly and complicated task for government institutions.” He concluded by stating that it was very strange that the document was not published in the official gazette of the country, a mandatory procedure for all such documents.
What do you think about Suncrip’s new providence that sets guidelines regarding suspicious activities on fintech platforms? Tell us in the comments section below.
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