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566. I participated in the pre-sale for a Government of Venezuela-issued "digital currency, digital coin, or digital token" before E.O. 13827 "Taking Additional Steps to Deal with the Situation in Venezuela" of March 19, 2018, became effective. Am I allowed to sell, trade, use, or otherwise deal in such "digital currency, digital coin, or digital token" on or after the sanctions effective date?
Absent authorization from OFAC, U.S. persons are prohibited from engaging in transactions related to, providing financing for, and otherwise dealing in any "digital currency, digital coin, or digital token" that was issued by, for, or on behalf of the Government of Venezuela on or after January 9, 2018. OFAC would consider license applications involving Government of Venezuela-issued "digital currency, digital coin, or digital token" on a case-by-case basis and base licensing determinations on the facts and circumstances of the particular application. [03-19-2018]
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Note: this FAQ and comments thereto were posted/written prior to the blocking of the Government of Venezuela pursuant to EO 13884. Neither the FAQ nor the comment have been updated in light of that development.
1) In FAQ 551, OFAC addressed the question of whether a digital currency that "would carry rights to receive commodities in specified quantities at a later date" fell within the scope of "new debt: for the purposes of EO 13808. It suggested that it would. This is fairly consistent with the principles underlying other interpretations of “new debt” made in the Russia SSI and Venezuela contexts.
FAQ 551 has since been removed. In this FAQ, OFAC says that all dealings in any "digital currency, digital coin, or digital token" that was issued by, for, or on behalf of the Government of Venezuela...