El Petro, the new Venezuelan cryptocurrency, fell under the ban of the US government. The reason for the ban was the sanctions imposed on South American state.
Investments in «disgraced» cryptocurrency, the U.S. Treasury will be treated as a loan to the Venezuelan authorities. American investors are warned in advance about the likely consequences, and must thoughtfully and carefully consider the choice of their investments, closely watching the Treasury.
It is known that the Venezuelan Parliament has not recognized the legality of the ICO El Petro, however, the government under the leadership of acting President Nicolas Maduro (Nikolas Maduro) announced the start of emission of first 100 million units of national currency.
The Ministry of Finance of Venezuela explained that the introduction of cryptocurrencies will help to overcome financial blockade of the country and contributes to the solution of problems with financing. In order to support cryptocurrency Venezuela has allocated 5 million barrels of oil.
We will remind that the decree about introduction of sanctions against Venezuela was signed by the President of the United States in August of 2017. Banned were transactions with securities and debt obligations issued by the government of Venezuela and state oil company PDVSA.