The National Superintendency of Securities of Venezuela (Sunaval) authorized the operation of a decentralized electronic exchange in which shares, fiat money, securities, debt securities or cryptocurrencies can be exchanged. It is a DeFi project on the Ethereum network that will be tested in the next 90 days.
The arrangement was published this Tuesday in the extraordinary Official Gazette number 6,578. The document mentions that the platform will serve the primary, secondary and derivatives market (options and futures). In addition, it will carry out processes of public offering of securities, negotiation, transfer, custody and settlement.
«This platform allows the security custody process to be individual, shielded and public, with a trading system available 24 hours a day and 7 days a week that guarantees transparency, security, speed, reliability, traceability, and lower cost of operations ”, mentions the Official Gazette.
The information was also disclosed Tuesday night by Manuel Aaron Fajardo García, who serves as the main manager of the new digital exchange. Through a live broadcast from your account On Instagram, the executive indicated that the project has been setting up “for months,” but that it was kept secret.
Fajardo said that in Venezuela there are many “interests that this does not go ahead.” The manager did not clarify whether it would be political, legislative or economic interests. However, he stressed that it was necessary to “emphasize that this goes ahead” and that the Operating fees had been reduced to practically zero to make it more “accessible” to people.
In relation to commissions or fees, the exchange’s website indicates that it will be 0% for fiat money sales operations and that it would be 0.1% for sales operations carried out through “alternative digital assets.”
Another aspect that Fajardo highlighted is that the decentralized stock market can serve as a source of financing for multiple sectors in Venezuela. The reason is that the new entity does not depend on the national financial system.
In accordance with media specialized, Fajardo has already developed other financial projects in Venezuela. Among them is the Interbanex system, a short-functioning virtual currency market that was authorized by the Central Bank of Venezuela (BCV) in January 2019.
Decentralized Stock Exchange of Venezuela: a DeFi on Ethereum
When reviewing the manual of operations of the electronic stock exchange, it is observed that it is a DeFi project (decentralized finance) that works with smart contracts and multiple tokens on the red Ethereum.
The backbone of the exchange is the Decentralized System of Encrypted Markets (SIDEME) which is made up of an ecosystem of «digital contracts». Among the contracts are the so-called “Controller”, “master”, “factory”, “market”, “storage”, “logic” and “diamond”, among others.
For those who wish to offer or demand cryptocurrencies in the secondary p2p market (between pairs), for example, there are certain restrictions. On this point the following was explained:
«The Participant must specify the financial asset that he wants to offer / demand, taking into account the following restrictions: a. In the event that the asset is fiat money or cryptocurrencies of a sidechain, only Securities may be demanded / offered. In the event that the asset offered / demanded is type ERC721 or Packable, only the participant can demand / offer assets type ERC223, fiat money or cryptocurrencies of a sidechain ”.
With the announcement, Venezuela would be implementing a draft DeFi that would involve a wide range of assets and cryptocurrencies. The latter, despite being mentioned in multiple sections, it is unclear whether it encompasses bitcoin, for example, or the national cryptocurrency project, the petro.