Sunacrip is the Venezuelan cryptocurrency regulator. It has published a new internal provision that outlines the procedures it will use to deal with suspicious activity in relation to fintech platforms. According to the document, suspicious activities such as using unauthorized platforms could result in $15,000 penalties for customers.
Sunacrip releases Internal Providence regarding Fintech Activities
Sunacrip is the Venezuelan cryptocurrency watchdog. It wants to be able to better monitor the transactions that Venezuelans use cryptocurrencies and other assets through fintech platforms. This new provision establishes the mechanisms to combat suspicious activity, even on fintech platforms.
Joselit Ramirez is the head of this organization and signed the provisionnce. This document seeks inclusion in working procedures to identify money laundering or terrorist financing schemes. Venezuela currently isn’t part of FATF due to international sanctions.
Internal providence says that non-authorized trades may be considered an alert and should be reported to the National Financial Intelligence Organization to be sanctioned. Although the memo doesn’t specify what penalties could be applied, another law, which establishes penalties up to $15,000 for illegal use of crypto assets, does provide guidelines.
Blockchain Adoption Disrupted
Users of exchanges such as Binance could be affected by these new measures. Binance is widely used within the crypto community, yet it lacks an official registration and authorization. These sanctions could cause users to flee the platform. There are also other popular exchanges that do not appear on this list.
Sunacrip had in January removed the licenses from two exchanges. It also informed users about authorized ones. Binance and other important names were left out. Ramirez instructed users at the time to stop using these illegal exchanges.
But it’s not only cryptocurrency exchanges that are affected by this regulation. The regulation will also apply to fintech platforms and fiat exchange services that operate in the country.
Raul Velásquez, a Venezuelan lawyer and cryptocurrency enthusiast, stated that the national financial intelligence unit does have the faculties to require information from crypto institutions as well as banks. “Fiat on and off-ramps are especially prone to be surveilled. However, this is a very costly and complicated task for the government institutions.” He concluded by pointing out it was very strange that the document was not published in the country’s official gazette, this being a mandatory procedure for all documents of this kind.
How do you feel about Sunacrip’s new guidelines for suspicious activity on fintech platforms? Comment below.
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