Experts Warn of Increased Scrutiny on Venezuela’s Use of Digital Currencies
Venezuela’s Increasing Use of Digital Currencies Raises Concerns Among Experts
As Venezuela looks to ramp up its use of digital currencies in the wake of U.S. sanctions on its oil industry, experts are warning that greater scrutiny by regulators and law enforcement will be necessary to prevent illicit activities.
The country’s state oil company PDVSA is reportedly planning to increase cryptocurrency transactions for its crude and fuel exports as the U.S. reimposes oil sanctions. However, it remains to be seen if payments in digital currency Tether by PDVSA will be targeted by Washington after May 31.
In a report presented on Monday, Venezuelan opposition politician Leopoldo Lopez and expert Kristofer Doucette highlighted the need for democratic governments to counter President Nicolas Maduro’s attempts to exploit cryptocurrency for illicit purposes. They emphasized the importance of setting up structures to combat money laundering in the digital currency space.
Doucette, a national security leader at Chainalysis, stressed the rapid growth of digital transactions in developing regions like Latin America and Africa, noting that while technology is advancing, corrupt governments are moving quickly to exploit the system for fraudulent activities.
During a conference organized by the Wilson Center in Washington, Doucette and Sigal Mandelker, a former U.S. Treasury Department official, discussed the efforts being made by the U.S. administration to increase regulation and encourage other countries to improve supervision of digital currency transactions.
With the landscape of digital currencies evolving rapidly, it is clear that vigilance and cooperation among regulators and law enforcement agencies will be crucial in ensuring the integrity of the financial system in the face of emerging challenges.
