In accordance with BitJie, a new report from TRM Labs reveals that Venezuela's increasing reliance on cryptocurrency, particularly stablecoins like Tether, has become a core part of its economy amid years of international sanctions and economic collapse. The report highlights the potential for unregulated peer-to-peer crypto platforms to facilitate sanctions evasion. Ari Redbord, TRM's Global Policy Director, noted that while crypto provides a lifeline for Venezuelans, it also poses risks of being used to bypass U.S. sanctions. The report also points to the popularity of a P2P crypto trading site, which accounts for 38% of all traffic from Venezuelan IP addresses. Venezuela's crypto regulator, SUNACRIP, has been weakened by corruption and restructuring, limiting its control over the digital asset economy. The country's Petro stablecoin, launched in 2018, failed to gain traction and was discontinued in 2024. Tensions between the U.S. and Venezuela have recently escalated, with the U.S. seizing a sanctioned oil tanker near Venezuelan waters.
Cryptocurrency Becomes Central to Venezuela's Economy Amid Sanctions Risks
币界网Share
Summary
Cryptocurrency plays a growing role in Venezuela’s economy as the country faces ongoing sanctions and economic turmoil. A TRM Labs report shows stablecoins like Tether are now central to daily transactions. Peer-to-peer crypto platforms are widely used, with one site receiving 38% of traffic from Venezuelan IP addresses. SUNACRIP, the national crypto regulator, has lost influence due to corruption. The Petro stablecoin, launched in 2018, was abandoned in 2024. U.S.-Venezuela tensions have risen, with a recent oil tanker seizure near Venezuelan waters. Crypto offers economic relief but also raises concerns over sanctions evasion.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.