Venezuelan authorities have launched a regulatory framework for cryptocurrencies, and  given the green light or a 90-day pilot of a crypto-powered “decentralised stock exchange.” 

On 23 September Venezuela’s National Superintendency of Crypto Assets and Related Activities published its first directives regulating crypto mining activities in the country – marking a U-turn for the government, which had previously opposed all cryptos except the national oil-backed Petro. Unfortunately for Venezuelan crypto miners, the new regulations  also oblige them to join a “national mining pool.”

And, in yet another attempt to use decentralised technologies to circumvent international sanctions, the crisis-ravaged South American country is launching ‘BDVE’ – what it claims to be the “first decentralised stock exchange in the world.” 

Apparently, users will be able to access the exchange from anywhere in the world, and trade both fiat currencies and “alternative digital assets”, without restrictions. Venezuela’s National Securities Superintendency will decide whether or not to grant a permanent license after the 90-day trial is complete. 

Though details are sketchy, BDVE appears to be Ethereum-based, though it isn’t known if the platform will support El Petro – the oil-backed national cryptocurrency.

Venezuelan President Nicolas Maduro has also announced a new “anti-sanctions bill”, which stipulates that private and state-backed crypto assets could be used to help work around international sanctions. 

As previously reported, in July Max Keiser predicted a Bitcoin hash rate war, pitting the United States against Iran and Venezuela, could drive prices to $500K USD. 

AYO.NEWS say.

With the COVID-19 pandemic decimating the global demand for oil, Venezuela’s main export, the country’s government is clearly even more desperate for foreign exchange than usual – hence its sudden acceptance of other cryptocurrencies and new decentralised stock exchange. 

But, will anyone really trust an exchange officially endorsed by one of the world’s most corrupt and incompetent governments? And, what about the 90-day trial? Will traders find themselves unable to access their assets at the end of it? 

We’d say this has about as much chance of working as the Petro. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

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