Venezuela operates within a multi-currency environment. While the official legal tender is the bolívar, it's common to see prices listed in US dollars or using the widely recognized REF (reference rate) system. Many businesses also accept euros, and in the Andean region, Colombian pesos are frequently used. An increasing number of merchants now accept payments through various cryptocurrency platforms, including Binance Pay.
Whether dealing with Bitcoin, Ethereum, or USDT, using cryptocurrencies in Venezuela is fully permitted under a specific legal framework that we will explore.
Venezuelan Regulations on Cryptocurrency Use
The foundational legislation begins with the Constituent Decree on Crypto Assets and the Sovereign Cryptocurrency Petro.
As stated in its first article:
"The purpose of this Constituent Decree is to establish the fundamental basis that allows the creation, circulation, use, and exchange of crypto assets, by natural and legal persons, public and private, resident or not in the territory of the Bolivarian Republic of Venezuela."
The regulation is clear and is reinforced in Article 9:
"The Venezuelan State will promote, protect, and guarantee the use of Cryptocurrencies as payment methods in public institutions, private, mixed, or joint companies, within and outside the national territory."
These provisions signify that the Venezuelan state recognizes the validity of cryptocurrencies for various applications. This includes their use in sales contracts, property rentals, restaurant payments, or compensating professionals for online services.
All these use cases are valid not only under the previously mentioned articles but also in accordance with the Constituent Decree on the Comprehensive Crypto Asset System and the subsequent measures derived from it.
This second decree, as its name suggests, created the procedures and norms that regulate the activities of all persons who engage with crypto assets or associated technologies in Venezuela.
In other words, the Constituent Decree on the Comprehensive Crypto Asset System represents the primary set of regulations governing the crypto economy in Venezuela.
Observant readers will note that its title uses the term "crypto assets" rather than "cryptocurrencies."
This distinction exists because the decree (like the first one mentioned) has a broader scope, referring not only to payments but also to other potential applications of these technologies.
Legal Nature of Cryptocurrencies in Venezuela
Within the Venezuelan legal framework, crypto assets are defined in Article 5, third numeral, of the Constituent Decree on the Comprehensive Crypto Asset System:
"A digital asset that uses cryptography and distributed ledgers as the basis for its operation."
An asset is anything you own that has economic value, such as money or goods that can be exchanged for money. If it is created and stored digitally (like a virtual book you authored that generates income), it is a digital asset.
If this digital asset is built using cryptography and distributed ledger technology (like blockchain), then it is a cryptographic asset or crypto asset.
In other words, for Venezuelan law, something will be considered a crypto asset if it is:
- Valuables in monetary terms;
- Digital in nature;
- Functions on a blockchain or similar distributed ledger technology.
Bitcoin (BTC) or Tether (USDT) are prime examples that meet all the requirements listed above. Furthermore, they fulfill these additional criteria:
- Functioning as a medium of exchange.
- Serving as a unit of account (used to price goods and services).
- Acting as a store of value (used to protect wealth from inflation).
These three functions are the fundamental roles of any currency. Therefore, the legal character or nature of cryptocurrencies is that of cryptographic digital assets that mimic the characteristics of traditional currency.
It's important to note that some crypto assets, like NFTs, are not considered cryptocurrencies.
Bitcoin as a Potential Foreign Currency
Bitcoin holds a special status not shared by other cryptocurrencies, primarily due to its recognition as legal tender in El Salvador.
In Venezuela, payments made with cryptocurrencies are legally valid and can even generate tax obligations. This is established, among other regulations, by the Law on Tax on Large Financial Transactions (Article 4, numerals 5 and 6).
However, cryptocurrencies are not legal tender in Venezuelan territory. This means individuals and businesses have the right to refuse them as a form of payment (they are only obligated to accept bolívares).
In contrast, El Salvador mandates the acceptance of bitcoin, granting it that status. Due to this, Bitcoin could be considered a foreign currency—a type of foreign money—in certain contexts.
If classified as such, Article 128 of the Law of the Central Bank of Venezuela could also apply. This article legalizes, once again, the use of Bitcoin as a means of payment in contracts or as a reference amount for equivalent payment in bolívares.
Article 8 of Foreign Exchange Agreement No. 1 describes different scenarios for obligations in foreign currency in greater detail.
Furthermore, recent rulings by the Supreme Court of Justice regarding foreign exchange would also be applicable.
In any case, whether Bitcoin is considered a foreign currency or not, it remains a cryptocurrency that, along with other crypto assets, operates under a solid legal base that guarantees its use within Venezuela.
Frequently Asked Questions
Is it legal to buy goods with Bitcoin in Venezuela?
Yes, it is legal. Venezuelan decrees explicitly promote and guarantee the use of cryptocurrencies as a valid payment method between private parties and in commercial transactions. Businesses can choose to accept them.
What is the difference between a crypto asset and a cryptocurrency in Venezuelan law?
A "crypto asset" is the broader legal term for any digital asset using cryptography and distributed ledgers. A "cryptocurrency" is a specific type of crypto asset that fulfills the traditional functions of money: medium of exchange, unit of account, and store of value.
Do I have to pay taxes on cryptocurrency transactions in Venezuela?
Yes, cryptocurrency transactions can generate tax obligations. Laws like the Law on Tax on Large Financial Transactions establish that certain crypto-based transactions are subject to taxation, similar to other financial operations.
Can a landlord in Venezuela refuse rent payment in USDT?
Yes. Since cryptocurrencies are not legal tender, no one is obligated to accept them as payment. A landlord can insist on payment in the official currency, bolívares, unless a prior contract specifically states that payment will be made in a cryptocurrency like USDT.
How does Venezuela's approach to crypto differ from El Salvador's?
The key difference is legal tender status. El Salvador mandates that businesses must accept Bitcoin as payment. Venezuela's framework permits and regulates its use but does not force anyone to accept it, maintaining the bolívar as the only mandatory legal tender.
Where can I safely learn more about managing different digital assets?
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