- Venezuela is likely to use cryptocurrencies to circumvent US sanctions on oil and gold, say dissidents and analysts.
- THE US REIMPOSED THE SANCTIONS DUE TO THE GOVERNMENT’S NON-COMPLIANCE. The U.S. reimposed the sanctions due to the Maduro government’s failure to comply with pre-election fairness agreements set for July 28.
Venezuela is likely to continue using cryptocurrencies to circumvent a new set of U.S. sanctions focused on the country’s oil and gold activities, according to Venezuelan dissidents and cryptocurrency analysts.
The government of Nicolás Maduro, despite being embroiled in corruption cases related to cryptocurrencies, seems willing to continue taking advantage of these digital assets to siphon funds from regulated channels.
In May, the United States re-imposed sanctions on Venezuela, citing the Maduro government’s failure to comply with agreements reached with the United States to ensure fair conditions in the upcoming presidential elections scheduled for July 28. Analysts indicate that the Venezuelan government will use cryptocurrency as a strategic tool against these sanctions, as has been the practice in the past.
Andrew Fierman, Head of National Security Intelligence at Chainalysis, noted that the Maduro regime has historically combined cryptocurrencies with a number of methods to circumvent international sanctions.
«Regimes under sanctions typically explore a variety of avenues to evade these restrictions,» Fierman explained.
Venezuelan authorities have recently halted cryptocurrency industry activities, including Bitcoin mining, in the wake of a corruption scandal involving more than $1 billion related to cryptocurrency and oil sales .
Despite these crackdowns and the involvement of cryptocurrency watchdog Sunacrip, its former director Joselit Ramirez, and other senior ministers, cryptocurrency remains a key tool for circumventing sanctions.
Previous investigations, conducted by Crypto News Flash and this time by and this time by Chainalysis revealed that Sunacrip and its associates conducted transactions in excess of $70 million in cryptocurrencies to streamline their operations .
PDVSA, the national oil company, is transitioning to having a greater fraction of its transactions settled in USDT, a prominent stablecoin tied to the US dollar, requiring more than 50% of the value of each oil cargo to be cleared in this digital currency, we have reported in more detail previously on CNF.
Despite these developments, Chainalysis has been unable to provide data on the number of seized cryptocurrency transactions related to sanctions evasion activities. This ongoing scenario highlights the complex role of cryptocurrencies in global geopolitical strategies and the challenges of regulating these digital transactions amid international sanctions.
