Month: October 2020

The Government of Venezuela has always been very much appreciative of cryptocurrencies and has also taken serious steps and measures to promote the same. Venezuela government is so very impressed with the cryptocurrencies that they have already created their very own crypto: Petro. National-Superintendency-of-Crypto-Assets-and-Related-Activities(“SUNACRIP”) has issued a degree, or it can say the very first degree on cryptocurrency. This decree is issued to regulate all the crypto mining activities in Venezuela.

The rise of the involvement of minors in the crypto world has led to severe criminal issues, and that is why the Venezuela government has done the necessary task and put up a decree that will regulate the activities of minors in cryptocurrency mining. They basically will have to meet with certain specifications to operate. This particular statement was handed out from the officials of SUNACRIP. The statement was signed by Joselit Ramirez, the head of SUNACRIP. The new decree also made its place in Gaceta Oficial.

What are the essential regulation points?

As already mentioned, due to increasing crimes and involvements of minors, Venezuela has taken a significant step by deciding to make a register that will keep track records of the citizens engaging in crypto activities. The decree consists of the order that any citizen of Venezuela will have to register to the “national Pool” which is the register itself. Anyone who has an interest or existing bitcoin miners will have to register to the so-called national register.

This register is essential because it will keep the record of the activities of the citizen involved in crypto. They will have to mention the type of activities they will be doing using cryptocurrency like trading or using mining equipment or anything else that concerns the Venezuela government. The Govt says that they will issue a license for the citizens concerned.

The issued decree also states that SUNACRIP “may” propose benefits and special privileges for the crypto miners for motivation and better performance by joining the national pool. The benefits will be served to the citizens joining the pool. Comprehensive crypto Assets System Sanctions will come to play its role if the miner denies joining the national pool. 

There are some very areas in the decree as well

1. It does not state whether the Venezuela government has total or partial authority to freeze the mined crypto of its not counted under the national pool.
2. It doesn’t state the situation one has to face if they don’t register to any such national pool.

Last Note

The registration for this national pool can be done from SUNACRIP or RISEC if one wishes to explore cryptocurrency. Due to many instances of illegal activities, although Venezuela is a hub for crypto miners, the Government is always skeptical about its authenticity and safety, and hence these stringent decrees.

Remember, if you are living in a state-owned house or if your Mining area is in the great home mission neighborhood area, you can’t be doing mining activities, as stated by Venezuela “Minister of Habitat and Housing”, Ildemaro Villarroel.

Kava, the multi-asset decentralized finance platform or DeFi that offers stablecoins, loans, and other financial products for users of cryptocurrency assets including BTC, ATOM, BNB, etc. has released a proposal for the first cross-chain money market on their Cosmos SDK built Blockchain to capitalize on DeFi possibilities on their website.

Kava, in their statement, said that it wants to build an application called Harvest that will allow users to lend or borrow digital assets, including BTC, CRP, BNB, BUSD, KAVA, and USDX. Investors will be paid interest in the form of Harvest’s governance token, HARD. Version 1 of the software will provide supply functionality, and version 2 of the software will provide borrow functionality along with extended governance.

The Harvest Decentralized Finance lending Cross-Chain Architecture.

Harvest is one of the many applications that will leverage Kava’s blockchain security for DeFi products. With the application primarily deriving its basics from KAVA, it will automatically combine other functions like Kava’s price reference data from Chainlink oracles and the bridges to help in cross-chain asset transfers.

Kava, in their statement, said that the cross-chain architecture would play a crucial role in giving Harvest access to any digital assets within the Kava blockchain network. The company website also stated that the project is set to capitalize on the Kava-4 Mainnet upgrade, where an expansion of the BEP3 Bridge will allow the support of BTC, BUSD, and XRP amongst other digital assets. In the long run, all these assets will be supported in the Harvest cross-chain money market along with Kava native assets like USDX, KAVA, and HARD.

The new application Harvest is a decentralized platform that can be accessed by anyone from anywhere. The open end application will help in integrating financial market stakeholders not limited to the financial applications, exchanges, and financial institutions. This would thus help the financial service providers to offer Harvest Borrowing and earning facilities directly to their clients.

Kava CEO and co-founder Brian Kerr, in a statement, said that it was important that the company offered a governance token. Their governance token, HARD, will harmonize decentralized activities within the lending and borrowing ecosystem. 

Harvest users having HARD will also be able to access reward distribution within the network and have the option to choose which digital asset to feature. Harvest will also distribute 20 percent of the total amount of HARD tokens to Kava stakeholders over the coming years for providing security and other base layer services to the Harvest platform.

Brian Kerr added that his foundation provided developers with the ability to quickly build applications on Kava’s open platform while being able to support its security, cross-chain bridges, and other infrastructure, which would otherwise cost a fortune and years to develop independently.