Venezuela Requests Oil Purchases to be Made in Government Backed Cryptocurrency
By Mark Lemon – Cryptocurrency Expert
Two years ago, the oil-rich nation of Venezuela launched their government backed cryptocurrency Petro. Venezuela intended to use this currency to maintain access to international financial markets. Many believed this to be a means to work around wide-reaching U.S sanctions. Reports show, however, that the project has faced difficulties and does not appear to be an active form of monetary exchange on any cryptocurrency trading market. Recently, the country declared crude oil purchases and port fees are to be made in its failed cryptocurrency, with buyers reacting negatively to the questionable strategy.
Although banners and advertisements with the Petro symbol decorate government buildings in Caracas, it remains overlooked by local Venezuelans who are unsure of how or where to buy it. Though the currency is backed by the country’s oil reserves, the largest in the world, oil buyers are hesitant and remain concerned that payments under this system would violate sanctions if they are to buy and sell cryptocurrency for its use. Exports of over 1 million barrels of crude oil were frozen as a result.
The Venezuelan President, Nicolas Maduro, aims to limit his nation’s dependence on foreign currencies and markets. The shift to demand cryptocurrency payments tries to achieve this, especially as the country’s crude exports began rebounding in December after recovering from U.S sanctions on their oil company, Petro leo de Venezuela SA. President Maduro continues to guarantee the revival and success of the currency in his annual speech.
Bloomberg published a document in March 2018 addressing the sanctions. It notes how crude buyers often use shipping agencies native to Venezuela to facilitate the port fees. Buyers are therefore typically not involved. The report acknowledges at least one firm who last year, included a clause that prohibited agencies from buying crypto using money transfers. Today, many companies use an exchange model for oil, rather than paying in cash. Swap transactions might include the trade of crude oil for gasoline or other fuel.
You can buy and sellBitcoin with BC Bitcoin 7 days a week. Our team are on hand for any assistance you may need. Get in touch today for the best available market rates.
Dear valued BC Bitcoin UK Clients,
I hope this email finds you well. We are reaching out to inform you of some significant changes to our services that directly impact our operations within the United Kingdom. Regrettably, due to the recent regulatory developments introduced by the Financial Conduct Authority (FCA) and the implementation of the new Financial Promotions Regime, BC Bitcoin is no longer able to offer our services to clients based in the UK. This very difficult decision is in compliance with the regulatory framework and ensures that we uphold the highest standards of transparency and legality. You can view the FCA publication here: https://www.fca.org.uk/publication/finalised-guidance/fg23-3.pdf As a result, we would like to inform you of the following changes and provide guidance on how to manage your assets with BC Bitcoin:
1. **Service Termination for UK Clients:**
BC Bitcoin will no longer be able to accept new purchase orders from clients residing in the United Kingdom.2. **Continued Operation Outside the UK:**
Despite the changes within the UK, BC Bitcoin will continue to operate outside of the UK as normal. Our services will remain unaffected for clients in other regions.3. **Withdrawal of Assets:**
For our UK clients holding assets with BC Bitcoin, we want to assure you that your assets are secure. You have the option to safely withdraw your assets or exchange them to GBP or EUR and subsequently withdraw. We have streamlined the withdrawal process to ensure convenience for our clients.4. **Conversion of Assets:**
To convert your Holdings to fiat please log in to your BC Bitcoin account and submit a sell order for the amount of coin you hold with us. During the process you will shown how much you will receive and asked the bank details you wish to receive payment to. In addition, you can request the conversion by emailing info@bcbitcoin.com from your registered email address. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process.5. **Withdrawal Procedure:**
To initiate a withdrawal, please email your request to info@bcbitcoin.com from your registered email address. You may be asked some security questions to verify your identity. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process. These changes are effective immediately, and we appreciate your understanding and cooperation during this transitional period. We understand that this may be an inconvenience for our UK clients, and we sincerely apologise for any disruption this may cause. Thank you for being a valued part of the BC Bitcoin community. We are committed to providing you with a seamless experience as we navigate through these regulatory changes. If you have any questions or concerns, please do not hesitate to reach out to our customer support team at info@bcbitcoin.com Kind Regards