Venezuela May Restrict New Cryptocurrency Exchanges


Venezuela may restrict new cryptocurrency exchanges, according to the latest Petro-related state-issued manual. It also outlined the requirements by which local cryptocurrency exchanges must operate. 

26 February, AtoZForex The government of Venezuela might decide to move to limit the number of cryptocurrency exchanges that will be able to operate in the country. Earlier last week, the government of Venezuela has published a manual as a part of a release series related to the state’s cryptocurrency that has been launched this month.

Venezuela May Restrict New Cryptocurrency Exchanges

Petro is an oil-backed Venezuelan state cryptocurrency that is about to be released in both a pre-sale and an initial coin offering (ICO). The initiative to create such digital currency has been announced by the President of Venezuela Nicolas Maduro back in December 2017. The white paper of the project has been released on the 30th of January. The document explains that the idea for the petro came from Hugo Chavez. Mr. Chavez has presented petro as a “strong currency backed by raw materials

The Petro-related manual stated that just eight exchanges might be initially approved to operate in the market. It also outlined the requirements by which local cryptocurrency exchanges must operate. The document suggests that the cap will be set at the outset, with the support of Venezuela’s cryptocurrency superintendency.

The document also mentioned that the government might change the cap after the first 90 days of the exchanges’ operations.

What now for Venezuela cryptocurrency space?

Some of the online reports have quoted Daniel Arraez, the co-founder of BlinkTrade, stating that the Venezuelan government might restrict the number of regulated exchanges to less than 8. Mr. Arrarez has also stated that the change in regulation might appear as a significant market opportunity. However, this would be the case only for the exchanges that are transparent and legitimate. He has added:

“We feel the current regulation change is a positive change. We’re already in conversations to operate as soon as possible. We feel the market is going to be safe and we can get operational guarantees to safeguard our customers’ funds and safety.”

It is still unclear how many exchanges will emerge in Venezuela in regards to this newly adopted regulatory approach. In the same way, it is not certain which exchanges are in the process of discussion with Maduro government.

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