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Venezuelan Sunacrip Amends AML and KYC Policies for Crypto

New and fresh Regulations concerning Anti-Money Laundering (AML) and Know Your Customer (KYC) has been introduced by the Venezuelan Authority supervising financials and digital asset industry.

Sunacrip i.e. Superintendence of Crypto Assets & Linked Activities is the financials as well as digital asset industry watchdog of Venezuela. Most recently, the authority has issued a new and advanced set of rules regarding AML and KYC policies.

The rules have been amended and brought in line with the AML/KYC regulations applied globally. The rules have been made applicable upon the country’s firms involved in the business of rendering crypto trading and exchange services. The association, which represents these crypto trading platforms in Venezuela, is known as Virtual Asset Service Providers and/or (VASP).

It was reported in the local media and the press that new crypto rules have been successfully issued and employed. The new rules would ensure weighing and determination of risks and dangers attached with digital asset trade/exchange. Similarly, the new rules would help governments to determine the exact nature of the transactions.

For instance, whether a transaction is for good purposes i.e. for terror financing or for purchasing weapons of mass destruction etc. These are the things, which can be determined, if and only if both the policies are implemented simultaneously in letter and together. Applying one policy at a time could be beneficial but would not serve the greater purpose, Venezuelan Government Official.

It has been reported that the purpose of implementing the crypto regulations is to have more information about crypto users. In addition, the Government also wishes to know which particular institutional investor is part of the crypto industry as well.

As per the definitions contained in the amended regulations, regulations would be applicable upon crypto custodians and wallet service providers as well. Before the amendment, though crypto custodial service providers were part of the regulations, wallet service providers too were not included. However, according to the new regulations, now the policies would be applicable to digital wallet service providers.

However, in order for ensuring compliance in a responsible way, Sunacrip has suggested that VASP will designate an officer. This office will liaise between VASP and Sunacrip to ensure strict adherence to the compliance and regulatory requirements. Sunacrip believes that since this designated officer will be reporting directly to Sunacrip it will help the authority in eliminating money laundering.

In the meantime, Sunacrip has issued a nationwide direction for crypto trading exchanges and service providers. Through the directions, the Authority has advised that any crypto transaction over and above 1000 Euros should be executed instantly. For instance, the executor of the transaction will be required to provide the identities of both the receiver and the sender.

Crypto transaction-related data available with service providers will also be provided to Sunacrip under the regulations. However, in the case of non-providing of such information, no penalty or fine has been imposed under the regulations.

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