Experts Warn of Increased Scrutiny on Venezuela’s Use of Digital Currencies

Venezuela’s Increasing Use of Digital Currencies Raises Concerns for Regulators and Law Enforcement

As Venezuela looks to increase its use of digital currencies for oil transactions following the United States’ imposition of oil sanctions, experts are warning of the need for greater scrutiny by regulators and law enforcement.

Venezuela’s state oil company PDVSA is reportedly planning to ramp up cryptocurrency transactions for its crude and fuel exports in response to the U.S. sanctions. However, there are concerns about whether these payments in digital currency, particularly Tether, will be targeted by Washington after May 31.

A recent report presented by 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 financial activities. Doucette, a national security leader at Chainalysis, emphasized the importance of setting up structures to combat money laundering in the digital currency space.

While digital transactions are becoming increasingly popular in developing regions like Latin America and Africa, experts warn that corrupt governments are exploiting this technology for fraudulent purposes. Sigal Mandelker, a former U.S. Treasury Department official, emphasized the need for increased regulation and international cooperation to address these challenges.

As the landscape of digital transactions continues to evolve rapidly, it is crucial for regulators and law enforcement agencies to stay ahead of the curve to prevent illicit activities and protect the integrity of the financial system.