Petro may face strong penalties in the U.S.-Venezuela is a country that is very optimistic and vocal about cryptocurrency usage. Venezuelan President declared that the sale of Venezuelan cryptocurrency “Petro” will be going public. Furthermore to this statement, yesterday the Venezuelan government made it mandatory to pay for its passport services in Petro.
Petro In U.S
However, it’s not all good for Petro in the U.S. There are strong efforts to tighten sanctions against cryptocurrency Petro by a group of senators in the U.S.
Venezuela Humanitarian Relief, Reconstruction and Rule of Law Act of 2018. This the Bill which is reportedly proposing humanitarian aid to migrants from the country. Similarly, it will help democracy recover from a long-term economic crisis.
The bill which was first introduced on September 24, is sponsored Bob Mendendez, Marco Rubio, Bill Nelson, Dick Durbin, Ben Cardin , Ted Cruz, Tim Kaine and several other senators.
Consequently, The Venezuelan government has been highly optimistic about implementing cryptocurrency in various industries across the country. As a hindrance to this optimism, the senators’-backed bill includes a section that mirrors the executive order signed by the U.S. president Donald Trump, which imposed sanctions on the cryptocurrency Petro.
Not only does it mirror the executive order from the U.S. president, but also makes it difficult for the infrastructure of the cryptocurrency by barring any residents of the U.S. to provide any “software or technological aid” to the government of Venezuela to launch the cryptocurrency.
SECTION DEMANDS A REPORT
Petro may face strong penalties in the U.S.-The section demands a report from the U.S. State Department, Commodity Futures Trading Commission and Securities and Exchange Commission on the effect of the cryptocurrencies on the United States sanctions. Likewise, It also stated that the report has to be submitted to the appropriate congressional committees that assess the effect of all digital currencies in the world on the United States sanctions. Similarly, The due date for the report is reportedly to be six months from the day the bill is signed into the law.
The report considers two major aspects with respect to the U.S. sanctions:
- First, are all the possible ways the digital currencies and cryptocurrencies could or would evade U.S sanctions.
- The second aspect is how to stop those currencies which directly or indirectly affect U.S. sanctions.