Venezuela Uses Cryptocurrencies to Circumvent Economic Sanctions

According to the results of the investigation of the Spanish newspaper ABC, the president of Venezuela, Nicolas Maduro (Nicolás Maduro), can use taxes and cryptocurrency to circumvent economic sanctions.

Spanish newspaper ABC
conducted an investigation and thus uncovered a scheme in which Maduro and his associates use a special wallet application for converting tax revenues into Bitcoin and other cryptoactive assets. After that, they are likely to go to the exchanges in Hong Kong, Hungary, Russia and China, where they are sold for Fiat and returned back to Venezuela.

Tax collections, which were analyzed by the ABC publication, were received from the International Airport of Maiquetia (IAIM), located near the capital of the country Caracas. Tax collection was carried out using an automated system that works with the Jetman Pay application.

It also became known that Maduro is negotiating on the empowerment of the application. His administration wants to add to the tax collections funds received from refueling transit aircraft.

The contract, which has not yet been signed, states that the Jetman Pay application will be used to circumvent US sanctions. The scheme is as follows: the plane lands at the IAIM and transfers fiat money into the account of the fuel received, while the state-owned oil and gas company Petróleos de Venezuela, S.A pays tax using the application. Further, this tax is converted into cryptocurrency and is sent abroad. Well, and then on a similar pattern – sold for fiat currency on foreign exchanges, which is returned to the territory of Venezuela.

IAIM has been using an automated tax system since last February.

In conclusion, ABC writes that Maduro probably expects to connect other airports in the country to this system.