National Assembly of Venezuela Outlaws El Petro

The National Assembly of Venezuela declared Petro illegal, calling it an effort to illegally mortgage the cash-strapped country’s oil reserves
10 January 2018   438

The National Assembly of Venezuela voted against the establishment of the national cryptocurrency “el Petro” on Tuesday, calling it an effort to illegally mortgage the cash-strapped country’s oil reserves.

In December 2017 Nicolas Maduro announced his plans to create a cryptocurrency backed by oil, gas, gold and diamond reserves in effort to advance monetary sovereignty, as it will help to overcome the financial blockade and thus move towards new forms of international financing for the economic and social development of the country.

Maduro said on Friday that his government would issue nearly $6 billion of petros as a way to raise hard currency and to evade financial sanctions imposed by Washington.

According to Prensa Latina, Maduro called on the people to actively repudiate the Assembly’s decision to declare the petro illegal.

Recently, we have reported that Nicolas Maduro allocated 5 billion barrels of oil to ensure the national cryptocurrency “el Petro”.

German Financial Regulator Clarifies Stance on ICOs

The Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) has clarified its position on ICOs
22 February 2018   55

German financial regulator admitted it was receiving many inquiries about the status of tokens and cryptocurrencies. According to an advisory letter, BaFin provides some basic definitions of ICOs and related terms. It is important because the results of a new survey showed that more than two-thirds of Germans know about bitcoin.

In this letter, BaFin educates the public and explains how tokens are typically generated, how blockchain works and that ICOs are used to raise funds for startup projects. The note states that for regulatory purposes, ICOs, tokens, coins, and cryptocurrencies are subject to the existing provisions in the field of securities supervision and other relevant national and EU laws.

The authority advises participants in ICOs to check and follow rules applicable to regulated financial instruments, such as securities. If businesses or individuals have any doubts about regulations, they should approach BaFin.

According to BaFin, companies should fulfill any obligations under the Banking Act and the Capital Investment Code, the Insurance Supervision Act and the Payment Services Supervision Act. The transactions may be prohibited if relevant regulatory requirements are not met.

The authority also states that legal classification of tokens requires precise examination. It will determine their status on a case-by-case basis after studying their features. The token should be transferable and tradable on cryptocurrency trading platforms in order to be classified as a security.