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Venezuela Plans To Curb Crypto Exchanges

Venezuela has announced plans to restrict the launch of new cryptocurrency exchanges that operate in the country. In the ten-page document that was published recently, only eight crypto exchanges would be allowed to operate in the domestic market. The manual highlights detailed requirements that the domestic exchanges must meet before launching operations under the new Petro licensing system.

Daniel Arraez the co-founder of BlickTrade stated that the new rules are essential to the market but only if the exchanges would be perceived as trustworthy and secure by the Venezuelans. At the same time, Venezuela and Russia governments are planning a collaboration on the Petro terms that were revealed late last year.

During the meeting held in Moscow recently, several economic and financial support for the new cryptocurrency- Petro between the two countries were highlighted. The two countries vowed to continue strengthening this trade balance by advancing the development of multiple and the pluricentric world that is free from colonial restrictions.

It’s not yet clear whether the Russian government will be directly involved in the creation of Petro that Venezuela plans to use evade the global permits that are imposed on them. Currently, the Venezuelans have expressed mixed reactions following the launch with some people calling it a vehicle for corruption, while other embracing positively embracing the use of the coin.

Meanwhile, the US Senators, Bob Menendez, and Marco Rubio have spoken out against the new virtual currency launch in Venezuela. In a letter that they co-wrote, the senators blasted the Petro token and urged the Treasury Department to closely monitor its growth and ensure that the token does not flout the US sanctions.

Recently during a hearing of the Senate Committee on Banking, Housing and Urban Affairs, Menendez further highlighted the risks of allowing the Petro to progress but Jay Clayton, chairman of Securities and Exchange Commission and the Commodity Future Trading Commission chairman Christopher Giancarlo did not clearly state how their agencies would restrict the use of Petro in dodging the US sanctions.

Published by Pamela Garcia

Pamela Garcia is a keen follower of U.S. stock market

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