The Office of Foreign Assets Control (OFAC) has authorized U.S. companies and experts to provide legal and financial advice to the Venezuelan government on potential foreign debt restructuring, but has imposed a clear prohibition. These services cannot be paid with virtual currency.
General License No. 58, issued on May 5, 2026, expressly prohibits payments in digital currencies, virtual currencies, or digital tokens issued by the Venezuelan government, including the Petro.
This General License does not allow you to:
Payment terms for services provided under this General License are not commercially reasonable and involve debt swaps or payments in gold or denominated in digital currencies, virtual currencies, or digital tokens (including the Petro) issued by, for, or on behalf of the Government of Venezuela.
Department of the Treasury – Office of Foreign Assets Control (OFAC)
This restriction requires Preventing governments from using crypto assets to evade sanctionsIn addition to virtual currencies, this license also rejects other payment methods.
Debt exchanges are prohibited (debt exchange), payments in gold, and terms that are not commercially reasonable. This measure is part of a controlled relaxation of sanctions.
U.S. authorities also prohibited transactions by “any person located in the Russian Federation, the Islamic Republic of Iran, the Democratic People’s Republic of Korea, the Republic of Cuba, or the People’s Republic of China, or any entity owned, controlled by, or engaged in joint ventures with such a person.”
Debt advice and renegotiation
The New York Times reports that OFAC has now authorized U.S. advisers to help the Venezuelan government evaluate and prepare for a million-dollar foreign debt restructuring of more than $170 billion.
However, this license only permits advisory and consulting services. No final agreements or direct negotiations are permitted. with creditors without further approval.
Experts believe that while this opening is aimed at facilitating an orderly debt renegotiation process, there are strong safeguards. Service providers must send a copy of the agreement to OFAC within 10 business days.
The decision comes as sanctions continue to be eased, particularly in the oil sector, following President Nicolas Maduro’s departure from power. Despite the approval, severe restrictions remain.
This license does not unlock any assets or permit transactions with any particular authorized entity, except within the limited scope of this advice. Analysts say a successful restructuring will require significant debt relief to make Venezuela’s economy viable and attract new investment.
It is important to remember that the Petro has been sanctioned by the United States since 2018 during the first term of today’s President Donald Trump, as reported by CriptoNoticias.
With General License 58, the United States maintains a balance by opening the door to Venezuela’s economic recovery while keeping closed what it considers risky avenues to circumvent financial regulations.
(Tag Translate) Cryptocurrency
