Venezuela’s Expanding Reliance on Crypto Raises Fresh Sanctions Concerns, TRM Warns

• USDT-driven peer-to-peer markets now anchor Venezuela’s daily transactions under sanctions.
• Weak oversight and minimal KYC in crypto channels heighten exposure to sanctions-evasion risks.
• Rising U.S.–Venezuela tensions increase scrutiny of the country’s expanding informal crypto use.

Venezuela’s informal crypto economy has moved to the center of everyday financial activity, creating new challenges for U.S. policymakers as geopolitical tensions intensify, according to a new analysis from TRM Labs. The firm’s report states that digital assets, particularly the USD-pegged USDT stablecoin, now serve as a core instrument for transactions nationwide. 

TRM says the trend is a direct outcome of years of U.S. sanctions, which have reshaped local payment behaviors and weakened access to conventional financial rails. As Washington sharpens its focus on Venezuela, the rising dependence on peer-to-peer crypto networks is emerging as a critical factor in the broader sanctions environment.

Informal Crypto Markets Fill Gaps Left by Financial Restrictions

TRM’s research indicates that U.S. sanctions have driven a shift toward stablecoin-based payments, as Venezuelans seek options to preserve their purchasing power and conduct small-scale commerce. These transactions often occur in decentralized or peer-to-peer environments that do not rely on banking partners, making oversight limited. According to the findings, this model has expanded quickly and now supports a wide range of routine exchanges among individuals and small businesses.

The firm also notes that key elements of this ecosystem operate with minimal verification requirements, placing activity outside traditional KYC processes. TRM states that this raises exposure to potential sanctions-evasion schemes, since transactions move through channels that lack formal supervision. 

Although Venezuela maintains a dedicated digital assets authority, SUNACRIP, TRM reports that corruption cases and internal restructuring have reduced the regulator’s capacity to oversee the growing market.

Sanctions Landscape Shifts as Tensions Rise

The report lands as the U.S. government increases pressure on Venezuela. In recent months, the White House has taken several steps aimed at tightening enforcement, including the seizure of a sanctioned oil tanker off the nation’s coast on Wednesday. TRM says that the deepening friction between the two countries may accelerate scrutiny of Venezuela’s crypto activity, given its expanding role in daily commerce and its potential as a sanctions-evasion pathway.

TRM frames the situation as a key development for U.S. decision-makers, noting that the scale and informality of Venezuela’s crypto economy should be treated as a material factor in future policy planning. The firm’s assessment highlights a landscape in which digital assets have become integral to economic survival strategies, while also presenting new compliance risks for international authorities.