Quick Answer
Yes, cryptocurrency is legal and regulated in Venezuela.
- The government legalized bitcoin mining and created the SUNACRIP regulatory agency.
- However, the main crypto regulator has been paralyzed since March 2023.
Legal Status of Crypto in Venezuela
Cryptocurrency is officially legal in Venezuela, operating under a formal framework established by the government to regulate cryptoassets. This legal status was solidified through decrees that created regulatory bodies, most notably the National Superintendence of Cryptocurrencies (SUNACRIP), and set compliance requirements for anti-money laundering. However, the situation has become a complex gray area in practice; SUNACRIP was paralyzed due to a corruption scandal, creating a regulatory vacuum. This has left the existing legal framework without active enforcement, leading to significant uncertainty and inconsistent oversight of the crypto sector.
Current Regulations
Venezuela's official regulations, established through various decrees, legalized cryptocurrency activities but placed them under strict government control. For instance, a 2020 update legalized bitcoin mining, but mandated that all operations must be registered and conducted through a state-controlled National Mining Pool (NMP). More recently, to navigate U.S. sanctions, the government has shifted its focus, increasingly permitting the use of dollar-tied stablecoins like USDT for private sector currency exchanges. To participate, businesses must use a digital wallet approved by authorities, channeling transactions through a limited number of authorized banks.
Regulatory Authorities
Several government bodies have been established to oversee Venezuela's crypto landscape.
- National Superintendence of Cryptocurrencies (SUNACRIP): Established in 2019, SUNACRIP is the primary entity granted the broadest powers to regulate all crypto-related activities, from mining to trading. It is also responsible for enforcing anti-money laundering rules, though the agency has been paralyzed since 2023 following a corruption scandal.
- Office of the Venezuelan Superintendent on Cryptoassets of Venezuela and Ancillary Activities (SUPCACVEN): Created in 2018, SUPCACVEN was the original governmental agency in charge of controlling and protecting the cryptoasset sector. Its duties included registering virtual miners and exchanges, issuing permits, and supervising transactions before it was replaced by SUNACRIP.
- Treasury of Cryptoassets of Venezuela: This state-owned company was established to manage the country's cryptoassets, including the issue, custody, and distribution of digital currencies. It was also responsible for the infrastructure and information systems supporting state-backed cryptoassets.
Historical Context
Venezuela's crypto journey began in December 2017 with the announcement of its state-backed cryptocurrency, the Petro. By April 2018, a formal legal framework was established, creating regulatory bodies to oversee the sector. This power was consolidated in early 2019 under a new agency, SUNACRIP. A key policy shift came in September 2020, when the government legalized bitcoin mining but mandated all operations use a state-controlled pool. More recently, to navigate U.S. sanctions, the state oil company began moving sales to USDT in 2024, a practice expanded to private exchanges by June 2025 to combat dollar scarcity.
Compliance Requirements for Businesses in Venezuela
Businesses operating in Venezuela must navigate a complex and evolving regulatory landscape. Government guidance outlines several essential rules for compliance, primarily focused on preventing financial crimes.
- AML and Due Diligence: Companies must implement robust due diligence systems as mandated by the Organic Law Against Organized Crime and Financing of Terrorism (LOCDOFT). This includes conducting real-time AML screening against global datasets to align with the country's action plan before the Financial Action Task Force (FATF).
- Know Your Customer (KYC) Requirements: Firms are required to perform thorough identity verification, which includes processing both legacy and modern Venezuelan ID documents (national ID, passport, and driver's license) equipped with chips, QR codes, and biometrics. Regulations from the Superintendency of Banks (SUDEBAN) also stress the importance of identifying beneficial owners and monitoring high-risk transactions.
- Appointment of Compliance Officers: Under LOCDOFT, obligated entities must appoint compliance officers responsible for overseeing and managing all AML and CFT prevention activities.
- Periodic Risk Assessments: Businesses must conduct regular risk assessments according to the methodologies laid out in the 2022 National Risk Assessment Regulations to identify and mitigate financial crime risks.
- NPO Supervision: New rules introduced in 2025 mandate that banks supervise the financing of non-profit organizations (NPOs). However, these measures have been criticized for imposing excessive and vague requirements that conflict with international standards.
- International Sanctions: Companies must adhere to procedures for implementing international financial sanctions and cooperate with foreign authorities as part of Venezuela's updated sanctions regime.
Why this matters for Cross-Border Payments
For businesses engaged in cross-border payments, Venezuela's shifting regulatory landscape presents significant challenges. The paralysis of SUNACRIP creates a high-risk environment, as the legal framework lacks active enforcement, leaving international transactions in a state of uncertainty. Strict government controls, such as the mandatory use of state-approved digital wallets and a limited number of exchanges, introduce operational bottlenecks and compliance risks for foreign companies. These conditions can lead to payment delays, increased scrutiny, and potential legal complications for any business moving funds into or out of the country.
How Lightspark Enables Compliant Crypto-Native Payments
Lightspark provides a global payments infrastructure built on Bitcoin, designed to simplify cross-border transactions. Its two main products, Lightspark Connect and Grid Switch, offer distinct access points to this network. Connect enables native Bitcoin payments by managing the complexities of the Lightning Network, while Grid Switch bridges domestic real-time payment systems for instant fiat-to-fiat transfers. By using Bitcoin as a universal settlement asset, Lightspark addresses the high costs and delays of traditional systems, allowing money to move instantly and at a fraction of the cost.
To help businesses navigate complex regulatory environments like Venezuela's, Lightspark’s platform is built to be compliance-ready. It facilitates adherence to rules by offering features like flexible custody models, audit-ready reporting, and built-in tools for OFAC screening. These capabilities don't handle compliance directly but empower regulated institutions—such as digital banks and exchanges—to integrate crypto-native payments while meeting their own stringent security and legal obligations.
To learn more about how Lightspark is modernizing global payments, visit their website.
Notice: This article is provided for informational purposes only and does not constitute legal advice.
Sources
Citations
- “Identity Verification, KYC and AML Compliance in Venezuela.” Didit, 21 Nov. 2024, didit.me/blog/identity-verification-kyc-and-aml-compliance-in-venezuela.
- Parraga, Marianna, and Deisy Buitrago. “Exclusive: Venezuela to Accelerate Cryptocurrency Shift as Oil Sanctions Return.” Reuters, 22 Apr. 2024, www.reuters.com/business/finance/venezuela-accelerate-cryptocurrency-shift-oil-sanctions-return-2024-04-22/.
- “The South American Country Banking on Crypto during ‘Economic War’ with US.” The Independent, 3 Sept. 2025, www.independent.co.uk/news/world/americas/venezuela-tether-usdt-dollars-crypto-b2819245.html.
- “Venezuela & Cryptocurrency.” Freeman Law, 2022, freemanlaw.com/cryptocurrency/venezuela/.
- “Venezuela Issues General Legal Framework on Cryptoassets and the ‘Petro’ Cryptocurrency.” Norton Rose Fulbright, May 2018, www.nortonrosefulbright.com/-/media/files/nrf/nrfweb/imported/la---venezuela-issues-general-legal-framework-on-cryptoassets-and-the-petro-cryptocurrency.pdf?la=en-la.
- “Venezuela’s New Banking Risk Management Rules Contravene International Standards.” International Center for Not-for-profit Law, June 2025, www.icnl.org/post/analysis/venezuelas-new-banking-risk-management-rules-contravene-international-standards.
- “With Dollars Scarce, Venezuela Currency Exchanges Turn to Crypto.” Reuters, 3 Sept. 2025, www.reuters.com/business/energy/with-dollars-scarce-venezuela-currency-exchanges-turn-crypto-2025-09-03/.
