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The local legal association analyzes the legal guidelines for crypto mining in Venezuela

June 18, 2020

The local legal association Cryptojuris Venezuela recently published a bulletin on its official blog dealing with the legal risks of cryptocurrency mining in Venezuela.

Bulletin number 004-2020 has been called “Digital Mining Special Bulletin”, It’s a short walk through that “Legal review from the perspective of digital mining activities in Venezuela”.

The text is intended to provide answers and legal advice to small, medium and large users involved in this activity. “To determine whether the job they are performing meets the requirements of Venezuelan regulations”displays the bulletin.

The local legal association analyzes the legal guidelines for crypto mining in VenezuelaThe local legal association analyzes the legal guidelines for crypto mining in Venezuela

As the text shows, the goal is to mitigate the legal risks associated with this activity in the Latin American country, which very clearly expresses the possibility of economic loss or even personal freedom due to non-compliance with the rule.

In Venezuela, users of this activity have recently been subjected to harassment, persecution and even the dismantling of farms several times by government agencies, provided that serious violations of the law occur in the course of their business.

The document contains three basic rules that require users to know if they are fully compliant so as not to be punished. by the Venezuelan authorities in the conduct of their mining activities.

The standards in question correspond to the electricity sector: organic law of the electrical system and the electrical supply, regulation on electrical services and quality standards of the electricity distribution service.

According to the legal association, such regulations are characterized by the fact that one of the basic elements of cryptocurrency mining activities is related to the consumption of electrical energy. and in the past this has been used as a weapon to lock up users involved in secret activities.

In this context, the document states that “The allegations by the police and administrative authorities that the miners have stolen electrical energy or disrupted the national power grid are completely wrong.”

Crypto legal review

To avoid these inconveniences, they recommend performing the relevant crypto compliance audit in accordance with electrical regulations., as well as “the technical check of compliance with the parameters required by the standards themselves ” electric.

For cryptojuris The respective audit must aim at compliance initiated by the Petro Zones in order to “determine and lead If the activity is not only within the legal framework of the national electricity system, but also at the tax level and in relation to the permissible import of equipment.

The above is set out in the basic regulation on the comprehensive cryptoactive system that governs all mining activities in the country and certifies users so that they can perform all activities related to cryptocurrency mining through the comprehensive register of services. in cryptoactive «RISEC».

Finally, the bulletin briefly discusses the rules for the fight against the illegal acts of digital money. The first to which it refers is the Organic Law Against Organized Crime and Terrorist Financing and, on the other hand, SUDEBAN Resolution 083-18, the body responsible for regulating the national banking system.

In this sense, the legal entity’s recommendation is that users should notify their banking institutions of the authorized activities they are performingto avoid imposing legal sanctions through the use of traditional financial instruments for the exchange of digital assets resulting from cryptocurrency mining.

In general, the document is a summarized and well-designed plan for anyone or institution who, under the microscope of a government that has demonstrated on other occasions, wants to mine cryptocurrency mining, those who do not comply with the regulations keep not stalling. his regulations’.

Despite the legal incentives, doubts about its effectiveness and actual practice have left unsatisfactory evidence in a fairly compromised judicial and police system among those who are or have been involved in cryptocurrency mining in the South American nation.