Venezuela Leaders Call for Scrutiny on the Use of Crypto

Experts believe that Venezuela’s increasing use of digital currencies, particularly after the United States’ decision to halt oil deals with the country by May 31, will need closer monitoring by regulators and law enforcement.

State oil company of Venezuela, PDVSA, plans to rely more on cryptocurrency transactions for its crude and fuel exports as the U.S. re-imposes oil sanctions on the country. However, it’s uncertain whether Washington will target payments made in the digital currency Tether by PDVSA after June 1.

Leopoldo Lopez, a opposition party politician of Venezuela, and Kristofer Doucette, an expert, highlighted the need for vigilance regarding transactions since President Nicolas Maduro assumed office. They stressed the importance of democratic governments countering attempts to exploit cryptocurrency for illicit activities.

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Doucette, a national security leader at Chainalysis, emphasized the necessity of establishing structures to combat money laundering associated with cryptocurrency transactions. He pointed out that while digital transactions are growing rapidly, particularly in regions like Latin America and Africa, corrupt governments are exploiting this technology for fraudulent activities.

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During a conference organized by the Wilson Center in Washington, Doucette and Sigal Mandelker, a lawyer with previous experience at the U.S. Treasury Department, noted efforts by the U.S. administration to increase regulation and encourage other countries to enhance supervision in response to these challenges.