Venezuela Extends Restructuring Period of Crypto Body Sunacrip Amidst Corruption Scandal
Summary:
The Venezuelan government has extended the reorganization period of its crypto oversight body, National Superintendency of Crypto Assets (Sunacrip), by six months following its shutdown in March 2023 due to a corruption scandal. The reconstruction process, which officially began on September 17, will now conclude in March 2024. The closure of Sunacrip, established in 2018 to regulate all crypto-related activities, led to instability in Venezuela's predominantly state-controlled crypto sector. The country's oil-linked cryptocurrency, Petro, remains operational despite rumors of liquidation.
Venezuela, a pioneer in the Latin American region for setting up its own cryptocurrency regulatory agency, National Superintendency of Crypto Assets (Sunacrip), now says it will need an extra six months to revamp the body. Sunacrip's work was effectively halted in March 2023. A presidential order issued on September 19 implies that President Nicolás Maduro has extended the forced renovation process of Sunacrip for an additional semester. This newly added extension period commenced on September 17 and will end on March 24, 2024. Sunacrip ceased operations in March 2023 following announcements from the government about a restructure due to a corruption case implicating its former high-ranking officials. At least ten people, including Joselit Ramirez Camacho, the initial leader of the crypto sector since 2018, were detained at the time. Venezuelan prosecutors claim Ramierz appropriated more than $3 million from state funds during his tenure at Sunacrip. He was responsible for the supervision of crypto regulation in Venezuela and for spearheading the implementation of Petro, the country's national oil-linked cryptocurrency. The regulatory authority's dissolution led to disorder within the Venezuelan crypto sector, which is predominantly state-controlled and has relied on digital currencies to bypass U.S. financial sanctions. It resulted in the closure of crypto mining operations across several states and a halt in operations at certain crypto exchanges. Sunacrip was founded by the Venezuelan government in 2018 to supervise every aspect of crypto transactions in the country, ranging from the "creation, issuance, transmission, trading and exchange" of all cryptocurrency assets. In 2018, the South American nation launched Petro, a state-backed oil-oriented cryptocurrency. Despite rumors of the government's intention to phase out the Petro currency by the summer of 2023, its official site is still operational as of the time of reporting.
Published At
9/26/2023 11:48:31 AM
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