U.S. warns investors over Venezuela's 'petro' cryptocurrency

The U.S. Treasury has warned U.S. investors to approach Venezuela’s proposed “petro” cryptocurrency with caution, saying that it may contravene U.S. sanctions against the government of Venezuelan President Nicolas Maduro.

Venezuela's President Nicolas Maduro (C) speaks in front of National Constituent Assembly President Delcy Rodriguez (R) and Venezuela's Chief Prosecutor Tarek William Saab during a special session of the National Constituent Assembly to present his annual state of the nation at the Palacio Federal Legislativo in Caracas, Venezuela, January 15, 2018. REUTERS/Carlos Garcia Rawlins

“Available information indicates that, once issued, the petro digital currency would appear to be an extension of credit to the Venezuelan government,” a Treasury spokesman told Reuters on Tuesday, citing U.S. sanctions that prohibit dealings in new debt from the Venezuelan government or its state oil company PDVSA [PDVSA.UL].

“The Venezuelan petro currency could therefore expose U.S. persons to legal risk,” the spokesman added.

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