Venezuela’s Socialist Establishment Bares its Ugly Fangs with Parasitic Crypto Tax
Nicolas Maduro and the government of Venezuela have levied a massive tax on crypto transactions. | Source: Shutterstock
After years of hiding behind the fig leaf of socialism and revolutionary anti-imperialist rhetoric, the embattled Venezuelan government of Nicolas Maduro has shown its true colours with a new 15 percent tax on cryptocurrency transactions that may be best described as opportunistic, if not an act of outright tyranny.
At a time when Hugo Chavez’ successor is facing an unprecedented challenge to his legitimacy, with U.S-backed opposition leader Juan Guaidó gaining more international recognition, the move underlines his government’s culture of economic vandalism that has turned South America’s largest oil producer into a basket case with the world’s least usable national currency.
The new policy, announced in the country’s official Gazette, issue No. 41581 quotes the Venezuelan National Superintendence of Crypto Assets and Related Activities (SUNCRIP) as saying:
“The sender of the remittances referred to in this ruling is obliged to pay a financial commission in favor of SUNCRIP up to a maximum amount of 15% calculated on the total of the remittance.”
While that sounds bad enough already, there’s more. The decree gives SUNCRIP the power to set transaction limits in addition to arbitrarily levying transaction tariffs of up to 15 percent. According to the announcement, SUNCRIP has set a crypto transaction limit of $600 per month, beyond which the sender will require permission from SUNCRIP up to a hard limit of the value 50 units of its ridiculous Petro cryptocurrency ($3,000).
In plain English, what this means is that Venezuelan crypto users can now expect to pay up to 15 percent of the value of their transactions to Maduro’s government,