Venezuela’s Attempt to Avoid Sanctions by Turning Airport Taxes into Bitcoin

Evidently, tax revenue and cryptocurrencies are being leveraged by Venezuelan President Nicolás Maduro and his administration. An investigative story was released at the end of July by Spanish newspaper ABC, in which it was stated this was being done as part of a broader effort to evade economic sanctions. Venezuela’s attempt to avoid sanctions by turning airport taxes into bitcoin. Globalexchange.

The newspaper claimed a digital wallet app was used by Maduro and his associates which turned tax revenue from domestic airports into bitcoin and other cryptocurrencies that were then transferred to exchanges in Hong Kong, Hungary, Russia, and China. According to the report, the funds were converted once there, and then sent back to Venezuela.

Global exchange. Maduro’s government has been banned from using US bank accounts, and from participating in the open international market. The ban is why Venezuela has been forced to look at cryptocurrencies as a way to obtain dollars. This effort is an example of how Maduro and his administration are contending with it.

The newspaper alleges taxes were collected through an automated system that works with an app called Jetman Pay. It also claims that the tax revenue in question came from the Maiquetia International Airport (IAIM) located near Caracas, the country’s capital. Globalxchange.

Apparently, Maduro’s administration is looking to expand its use of the app. It collects proceeds from refueling airplanes that traffic the airport and would like to include them.

Global exchange. According to the report, no contract has been signed yet. When it will be, the Jetman Pay app would be used to directly defy the U.S. ban….again. Since February 2018, the automated system has been used at IAIM for airport tax collection. The speculation that Maduro may be looking to expand the scheme to other airports across the country was concluded in the report.

The way the scheme works, is that when a plane lands at IAIM, it will transfer fiat currencies in exchange for fuel. The app to pay government taxes would then be used by Petróleos de Venezuela, S.A, the state’s oil and natural gas company. The funds would then be sent abroad as cryptocurrency. Globalexchange.