U.S. Sanctions Influence Crypto Use in Venezuela Amid Regulatory Challenges
A report by TRM Labs highlights how U.S. sanctions have driven the everyday use of cryptocurrency in Venezuela, with a particular emphasis on the stablecoin USDT. Informal peer-to-peer crypto trading platforms, often with minimal Know Your Customer (KYC) checks, dominate crypto activity in the country. Notably, a single platform accounted for approximately 38% of Venezuelan IP traffic related to crypto trading.
The crypto landscape in Venezuela includes hybrid trading platforms and rapid cross-border stablecoin flows, which have the potential to create pathways that evade sanctions. Oversight of digital assets is weakened by corruption scandals and ongoing restructuring within SUNACRIP, Venezuela's crypto regulatory body.
Venezuela's Petro, a government-backed cryptocurrency launched in 2018 and backed by oil and mineral reserves, was discontinued in 2024 amidst controversy and its role in tensions between President Maduro's administration and opposition groups. Recent U.S. actions, including the seizure of a sanctioned oil tanker, have escalated tensions further, with former President Trump not ruling out the possibility of military intervention.
