Venezuela has decided to extend the reorganization and shutdown period for its crypto oversight body, the National Superintendency of Crypto Assets (Sunacrip), until March 24, 2024. This extension comes after Sunacrip ceased its operations in March 2023 due to a corruption scandal involving its former top management. At least ten individuals were arrested during this period, including Joselit Ramirez Camacho, who led the crypto department since its inception in 2018. Ramirez was accused of embezzling over $3 million from the state during his time at Sunacrip, where he oversaw crypto regulation and the implementation of the Venezuelan national cryptocurrency, Petro.
The closure of Sunacrip created chaos in Venezuela’s crypto industry, which has strong ties to the government and has been using digital assets to circumvent U.S. financial sanctions. Crypto mining facilities in several states were shut down, and some crypto exchanges were forced to halt their operations.
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Sunacrip was established by the Venezuelan government in 2018 to oversee all crypto-related activities in the country, including the development, issuance, transfer, marketing, and exchange of digital assets.
Despite reports suggesting that the government planned to liquidate the Petro, the official website for the oil-backed cryptocurrency is still operational as of now.