Venezuela Announces Pre-Sale of Petro

Nicolas Maduro has announced the pre-sale of the national oil-backed cryptocurrency, the Petro, and signed the official Petro’s whitepaper
31 January 2018   338

The President of Venezuela Nicolas Maduro has announced during the meeting of the council of ministers on Tuesday that the pre-sale of the national oil-backed cryptocurrency, the Petro, will begin on February 20. The president has also presented and signed the official Petro’s whitepaper and unveiled the Petro Container for mining the new currency.

The meeting of the council of ministers on TuesdayThe meeting of the council of ministers on Tuesday

We have reached the future. Venezuela advances as an economic power. Venezuela is at the forefront of the world, and we are going to accelerate permanently the start-up of the cryptocurrency, the petro.

 

Nicolas Maduro

The President of Venezuela

The president added that the petro pre-sale will be “through ERC20 tokens.”

The whitepaper details “the functions, vision, and conditions” of the petro, Maduro said. However, despite many Venezuelans asking on social media for access to it, the whitepaper has not been released to the public yet.

During the meeting, Maduro also announced his intention to accelerate the entry into the operation of el petro cryptocurrency and mining farms through the Petro Container, which he unveiled at that time, adding that all the savings banks in the country can have their mining farms and participate in el petro.

Maduro first announced the creation of the petro in early December. Then he assigned over 5 billion barrels of crude oil to back the new currency and announced the issue of 100 million units. However, the Venezuelan National Assembly soon declared the petro illegal and cannot be backed by oil.

German Financial Regulator Clarifies Stance on ICOs

The Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) has clarified its position on ICOs
22 February 2018   26

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.