Forex trading in Venezuela is subject to a complex and evolving regulatory environment. The Central Bank of Venezuela (BCV) oversees foreign exchange operations, and the government has implemented various controls and systems to regulate currency exchange. One such system is the DICOM (Sistema de Divisas de Tipo de Cambio Complementario Flotante de Mercado), which allows for the auction-based purchase and sale of foreign currency through authorized financial institutions. Individuals and legal entities must register and comply with specific requirements to participate in these auctions.
Despite these mechanisms, the legal framework imposes strict penalties for unauthorized foreign exchange activities. The New Currency Exchange Law stipulates severe sanctions for violations, including imprisonment and substantial fines. For instance, promoting or determining prices of goods and services using unauthorized exchange rates can result in imprisonment of 7 to 12 years and fines amounting to 200% of the difference obtained.
"The New Currency Exchange Law provides stricter punishment for this crime. Specifically, it provides for imprisonment terms of 4 to 8 years and a fine of 10 TU, effective at the time of conviction, for each USD or its equivalent in another currency, of the amount of the operation."
Furthermore, the government mandates that foreign currency transactions must be conducted through the BCV, with limits imposed on the amount that can be exchanged. For example, there are caps of $50,000 per week and $350,000 per month for currency exchanges. These restrictions have been criticized for hindering business operations and contributing to the growth of parallel exchange markets.
In conclusion, while forex trading is not explicitly illegal in Venezuela, it is heavily regulated and fraught with legal complexities. Individuals and businesses must navigate a stringent regulatory landscape, ensuring compliance with official exchange systems and avoiding unauthorized transactions to mitigate legal risks.
Sources:
Norton Rose Fulbright - Venezuela Regulates New System for Transactions in Foreign Currency (1)
Norton Rose Fulbright - Venezuela's New Currency Exchange Law (2)
Last updated: 17-05-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
