Trump Signs Historic Executive Order Barring Americans From Buying Venezuelan Fiat Cryptocurrency

U.S. President Donald Trump has banned the Venezuelan government-backed cryptocurrency, the Petro, through a historic signed executive order available on the White House website, on March 19th, Bloomberg reported. 

“I, DONALD J. TRUMP, President of the United States of America, in order  to take additional steps with respect to the national emergency  declared in Executive Order 13692 of March 8, 2015, and relied upon for  additional steps taken in Executive Order 13808 of August 24, 2017, and  in light of recent actions taken by the Maduro regime to attempt to  circumvent U.S. sanctions by issuing a digital currency in a process  that Venezuela’s democratically elected National Assembly has denounced  as unlawful, hereby order as follows,” the order published on the White House website begins. 

The order continues: “All transactions related to, provision of  financing for, and other dealings in, by a United States person or  within the United States, any digital currency, digital coin, or digital  token, that was issued by, for, or on behalf of the Government of  Venezuela on or after January 9, 2018, are prohibited as of the  effective date of this order.”

The ban reportedly comes as part of a campaign to put pressure on the  Venezuelan regime government of President Nicolas Maduro who issued the  cryptocurrency to avoid U.S. sanctions. As per the order, U.S. citizens  are strictly prohibited from engaging in transactions using the  oil-backed cryptocurrency. 

The prohibition frustrates the efforts of Maduro’s government to boost  its foreign currency reserves. Ironically the ICO token offering  accepted transactions in U.S. dollars and euros, meaning that Venezuelan  citizens could not legally participate, as there is a ban in Venezuela  on buying foreign currency. 

The order also authorizes U.S. Treasury Secretary Steven Mnuchin to  issue regulations to enforce the executive order. The Treasury  Department announced sanctions on four Venezuelan government officials earlier this year. 

From the order several U.S. agencies are authorized to take action: 

 “The Secretary of the Treasury, in consultation with the Secretary of  State, is hereby authorized to take such actions, including promulgating  rules and regulations, and to employ all powers granted to the  President by IEEPA as may be necessary to implement this order. The  Secretary of the Treasury may, consistent with applicable law,  redelegate any of these functions to other officers and executive  departments and agencies of the United States Government.” 

According to Mnuchin, “President Maduro decimated the Venezuelan economy  and spurred a humanitarian crisis. Instead of correcting course… the  Maduro regime is attempting to circumvent sanctions through the Petro  digital currency.” 

The Treasury Department further warned investors in January to avoid the  Petro, calling it “another attempt to prop up the Maduro regime, while  further looting the resources of the Venezuelan people,” Reuters reported. 

Mnuchin previously expressed  in November of last year, that his department was “looking very  carefully and will continue to look at Bitcoin and other  cryptocurrencies.” 

This is extremely worrying to say the least but not surprising, leaving  us all with a thought to ponder wLhether the U.S. can simply issue  executive orders against any cryptocurrency? For example, can the U.S.  make it illegal to use privacy coins (anonymous digital currencies)  stating they are a “risk to national security?” 

A further more relative question proposed  by CCN, since the Venezuelan cryptocurrency uses the NEM blockchain  does that mean crypto enthuiasist can’t trade NEM tokens (XEM) or for  exchanges that are listing XEM trading trade pairs would that be  considered aiding Venezuela by applicable law, since these actions add  liquidity to the market? 

Bitcoin is currently trading at [FIAT: $8,941.04] according to Coin Market Cap at the time of this report. 

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