Bitcoin Miners In Venezuela Will Have To Register With The Government

One of the problems that governments are finding with bitcoin and other cryptocurrencies is that there are no regulations in place to control it, but over in Venezuela, the local government is hoping to change that by developing a legal framework in which it would basically require all bitcoin miners to register with the government.

President Nicolás Maduro has also appointed Carlos Vargas as the first “superintendent of Venezuelan cryptocurrency”. According to Vargas, “We want to know who they are, we want to know where they are, we want to know what equipment they are using.” The online registry is expected to go live on the 22nd of December, 2017 and miners will have to register themselves.

This seems to be done in an effort to try and cut down or at least keep track of cryptocurrency and what it is used for. In a report from Cactus24, police raided a warehouse in the city of Barquisimeto and arrested a 31-year old who has been accused of money laundering, illicit enrichment, computer crimes, financing terrorism, exchange fraud, and damage to the national electric system.

According to the police, “Digital currency is not endorsed by any banking institution in the world nor has it been approved by any country. The currency is being marketed with legal appearance but in essence it operates in secret.” Presumably the registry will act like the serial numbers on our bank notes, where it can be traced and kept track of should it somehow be used in illegal activities.

Whether or not this is something that other countries will adopt in the future in a bid to regulate the cryptocurrency remains to be seen.

Tyler Lee
Categories: General
Tags: bitcoin, Legal