Due to the galloping inflation (1), political instability, and sanctions, cryptocurrency is very popular in Venezuela. In addition, regulation is constantly changing, and the cryptocurrency exchange business is in state of high informal competition. Venezuela also has a very high crime rate and a low standard of living.
Country overview
#85
VenezuelaCountry stats
Rating Points
135
This indicator describes the overall rating of a given jurisdiction on several parameters according to cryptocurrency operations - market volume, crypto regulation, business climate, taxation framework.
Crypto Penetration
10.3%
Estimated percentage of crypto users out of the country's total population based on public data.
Legal Entities
Empty
Number of crypto companies registered in the country based on regulator data if available or other types of public data.
Regulation Points
60
An overall assessment of the granularity of crypto regulation in a given country. A high score is also given to countries where cryptocurrency transactions are highly regulated.
Amount of crypto users
2 894 300
Total amount of crypto users out of the country's total population based on public data.
Taxation points
15
This figure, according to our analysts' calculations, indicates the overall level of tax burden for cryptocurrency transactions in a given country. The higher the indicator, the lower the burden.
Market volume points
119
A rough estimate of this jurisdiction's retail crypto market relative to the rest of the world. The higher the indicator, the higher the market potential.
Status of crypto
Legally allowed
General status of cryptocurrency regulation in this jurisdiction.
Crypto payments
Legally allowed
The legal status of cryptocurrency payments for goods and services in a given country based on information from regulators, public data and feedback from our community.
Security Level
Very high danger
The overall level of security in a given country based on open data.
Crypto Salaries
No info
The legal status of cryptocurrency salaries to employers in a given country based on information from regulators, public data and feedback from our community.
Business Climate
No data
Overall assessment of the friendliness of this country for crypto-business. This indicator takes into account the cost of obtaining a license and the attitude towards crypto entities in the country.
Stablecoin Regulation
No data
This indicator is evaluating the regulation of stablecoins in a given country. Complex regulation means that it is possible to issue steiblcoins and obtain a license for this activity. Basic regulation means that the issuance of stablecoins is possible, but not all legal aspects are defined in the law. Standard regulation means that there is a legal practice of steylcoin circulation in a given country.
Bad Factors
Sanctions
This section describes the unfavorable economic factors for crypto-business in a given country. These are countries that are under sanctions or on the FATF grey list and other factors.
Types of licenses
Crypto-to-crypto
This license type allows VASP to provide legal exchange from one cryptocurrency to another.
Crypto-to-fiat
This type of license regulates the exchange from cryptocurrency to fiat.
Wallet/Custody
This country has a legal licensing procedure for companies that store cryptocurrency - - crypto wallet providers and custodians.
Good
Medium
Bad
Venezuela has a Very High danger security level according to our rating. Jurisdiction has 17.9 points (from 100) for safety level in Numbeo crime rating (2). The homicide level (3) is 19.3 per 100,000 inhabitants a year. Level of firearm-related death (4) 49.73 per 100,000 inhabitants a year. Unfortunately, the socio-economic situation is such that cryptocurrency owners run the risk of becoming a victims of robbery or state crime.
Venezuela has recently updated its crypto legal framework. Now, paying for goods and services in cryptocurrencies is legal without requesting any authorization, and the government has also canceled the special crypto transaction tax. According to Decree No. 4,784 (5), published on February 23, 2023, the new provisions on the IGTF will allow exonerating the purchase/sale of cryptocurrencies, such as Bitcoin (6) as well as payments made with these assets for goods and services, within Venezuelan territory. The measure will also allow remittances (7) from abroad through institutions authorized for this purpose through cryptocurrencies or assets other than the Petro (8), avoiding generating a tax burden for the beneficiaries.
We need more information about this topic. Crypto payments to individuals may be legal, but not salaries. Please contact us, if you have any information on this topic.
In Venezuela, the use of cryptocurrencies as payment is regulated by the Constituent Decree on the Integral System of Cryptoactives, number 41,575 of January 30, 2019.
Venezuela has various regulations that regulate the use of cryptocurrencies, including Decree №4025 of the President of the Republic, which legalizes crypto exchange and Decree № 4083, which governs mining operations.
The government's policy in cryptocurrency regulation is constantly changing - there were attempts to ban crypto exchanges, but now their work is legal. However, due to high inflation and political instability, people use p2p exchanges more.
One year after the entry into force of the Tax Law on Large Financial Transactions (IGTF), the Venezuelan government has decided to exempt operations carried out with bitcoin (BTC) and other cryptocurrencies from some payments of these taxes.
The measure was announced (9) in February 2023. The document establishes in its article 5 that "they are not subject to the tax payment". However, the measure will only be in effect for one year.
| Tax name | Index |
| PIT tax Min | 0 |
| PIT tax Max | 34 |
| Corporate tax (CIT) | 34 |
| Min Individual CGT (for crypto) | 34 |
| Max Individual CGT (for crypto) | 34 |
| Wealth tax Min | 0,25 |
| Wealth tax Max | 0,25 |
PIT
The headline PIT rate is 34% based on PWC(10).
CIT
The Headline CIT rate is 34% according to PWC(10).
CGT
The headline corporate capital gains tax rate is capital gains, subject to the normal CIT rate (34%) by PWC(10).
1)The inflationary fire in Venezuela is slowly extinguished. Article
2)Crime Index by Country 2023 Mid-Year
3)List of countries by intentional homicide rate
4)List of countries by firearm-related death rate
5)Decree No. 4,784. Law
6)Noticias sobre Bitcoin. Bitcoin News. Article
7) Noticias sobre Remesas. News about Remittances. Article
8)Noticias de El Petro. El Petro News. Article
10)Overview. PWC