Venezuela Introduces Ambiguous Cryptocurrency Taxation Guidelines

Venezuela has always been an interesting country when it comes to Bitcoin and other cryptocurrencies. Despite this form of money being very popular, it also irates the local government. A new proposal has appeared in local newspapers which claims crypto transactions will be taxed. It remains unclear how the government plans to enforce such actions in the real world, though.

Venezuela Wants to Tax Crypto Transfers

It is not the first time Bitcoin and altcoins are met with a lot of scrutiny in Venezuela. Ever since the country introduced its own native cryptocurrency, any efforts involving Bitcoin and altcoins have been scrutinized beyond belief. President Maduro is, seemingly, intent on ensuring the Petro will be the only cryptocurrency still standing in his country when push comes to shove.

In the latest effort, it would appear Venezuela’s government will try to tax regular cryptocurrency transactions. While there is an argument to be made for this particular approach, it will always be difficult to effectively do so in the real world. After all, this new form of regulation will apply to both individual users and legal entities alike. A valiant effort, but one that will also pose its own set of problems.

According to local sources, this new regulation will introduce some key changes. First of all, there will be monthly limits as to how much cryptocurrency users can transact every single month. Again, ensuring consumers and companies adhere to these limits is very difficult, depending on which cryptocurrency is being used in the process. Using privacy-oriented coins like Monero can easily bypass these restrictions.

Secondly, anyone looking to surpass the monthly limits put in place needs to obtain specific approval from SUNACRIP. For those unaware, this is the Venezuelan National Superintendency of Crypto Assets and Related Activities. Obtaining approval will be very difficult first and foremost, and there will still be a hard limit in place even when getting approval. Not necessarily the approach either consumers or corporations are looking for.

For the time being, there is still a lot of uncertainty regarding how these new rules will be enforced. While tracking crypto transactions is not all that complicated, some currencies can easily put a spoke in the wheel. Moreover, it remains a bit unclear if this only applies to Petro transactions or all cryptocurrencies being used in Venezuela. If it is the former, other cryptocurrencies may become “prohibited’ in Venezuela at this rate.

This is yet another strategic development in Venezuela, albeit one that seemingly will benefit neither consumers nor corporations. While it is understandable the Petro is considered to be the lifeblood of the Venezuelan economy right now, it too remains shrouded in mystery and controversy. All things considered, it would appear this new guideline will not cause too many problems until its exact purpose and implication are explained in an official capacity.