CONTINGENCY PLAN FOR COMPANIES adopting BTC, ETHEREUM or another CRYPTOCURRENCY.

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BUSINESS CONTINGENCY PLAN supported by BTC or ETH (or other CRYPTOCURRENCIES). Also adaptable to VENEZUELAN COMPANIES!!

In an increasingly volatile and interconnected economic environment, companies must consider contingency plans that leverage cryptocurrencies like BTC and ETH to diversify reserves, reduce exposure to fiat currencies, and accelerate cross-border transactions.

A STRATEGIC FRAMEWORK is proposed to integrate CRYPTOCURRENCIES into the BUSINESS CONTINUITY PLANNING, without disregarding the risks and the need for STRICT CONTROLS.

OBJECTIVES.

1-. The plan seeks to maintain operational liquidity in the face of financial shocks. Ensure reserves are resilient to currency devaluation.

2-. Facilitate international payments with lower costs.

3-. BTC and ETH, due to their liquidity, adoption, and ecosystem maturity, can serve as reserve assets and as a means to facilitate global cash flows, always within prudent exposure limits and with clear governance policies.

GOVERNANCE and ROLES.

1-. A governance structure is proposed that defines responsibilities, levels of authorization, and segregation of functions for the acquisition, custody, and use of cryptocurrencies. 3-. A risk committee assesses volatility, regulation, and fiscal implications.

A security officer and a compliance officer (KYC/AML) ensure adequate practices.

3-. Wallet and custody providers must meet security and audit standards.

CONTROLS and SECURITY.

1-. Cold wallets must be implemented for critical reserves and hot wallets for daily operations, with segmented keys and multi-factor authentication.

2-. Policies for key management, audit logs, and periodic penetration testing are required. The local regulatory framework must be reviewed to understand fiscal and reporting obligations.

OPERATIONAL PROCESSES.

1-. Integrate the settlement of BTC/ETH into the cash flow, automate partial conversions to fiat for operational expenses, and set exposure limits.

2-. Maintain sufficient liquidity in fiat for payroll and key suppliers, while leveraging the reserve in cryptocurrencies for capex or strategic investments according to scenarios.

RISK ASSESSMENT.

1-. Identify risks of volatility, regulatory risks, counterparty risks, and security risks. 2-. Develop contingency plans in case of drastic price drops, interruptions of custody services, or connectivity failures.

This approach balances financial innovation with operational prudence, strengthening corporate resilience in an ever-evolving digital ecosystem.

HOW I WOULD APPLY THIS PLAN for a VENEZUELAN COMPANY

To adapt the contingency plan based on cryptocurrencies to a Venezuelan company, maintaining a practical and prudent approach:

1. REGULATORY and FISCAL CONTEXT:

-. Familiarize yourself with current Venezuelan regulations regarding cryptocurrencies, taxes, and reporting.

-. Consult with a local advisor to understand profit, VAT/ISLR obligations, and possible KYC/AML requirements applicable to crypto operations and international suppliers.

2. GOVERNANCE and INTERNAL POLICIES:

-. Adapt the proposed governance structure (risk committee, security and compliance officers) to your size and resources.

-. Define clear policies for the acquisition, custody, and use of BTC/ETH, with exposure limits and authorization based on hierarchical levels.

3. CUSTODY and SECURITY:

-. Given the volatility and cybersecurity risks, prioritize cold wallets for reserves and hot wallets for daily operations, with segregation of functions.

-. Implement MFA, encryption, periodic audits, and penetration testing. Consider custody providers with regional presence or compliance.

4. LIQUIDITY and OPERABILITY:

-. Maintain a sufficient fiat reserve for payroll and suppliers, and propose partial conversions to bolívares or local currency as needed, avoiding excessive exposure to crypto during high volatility.

-. Establish a cash flow that integrates BTC/ETH for capex or international supplier payments when feasible and cost-efficient.

5. MANAGEMENT of LOCAL RISKS:

-. Assess the volatility of the bolívar and inflation; use crypto as a partial liquidity hedge, not as the only asset. Define stress scenarios (price drops, service interruptions of custodians) and specific contingency plans for each case.

6. COMPLIANCE and REPORTING:

-. Document operations, maintain records, and prepare periodic reports for management and auditors.

-. Ensure KYC/AML compliance adapted to suppliers and clients, especially in international transactions.

7. TECHNOLOGICAL INTEGRATION: -. Automate crypto/fiat conversions and treasury settlements as much as possible, using solutions that support cross-border operations while limiting exposure to abrupt fluctuations.

8. COMMUNICATION and EDUCATION:

-. Train key teams on risks, security, and processes, and establish a clear channel for approvals and operational questions.

9. ADDITIONAL PRACTICAL CONSIDERATIONS in VENEZUELA:

-. Evaluate the connectivity and availability of exchanges or custody services with regional presence or acceptance.

-. Consider possible limitations of access to networks and external services, and design contingencies for Internet or provider interruptions.

NOTE: THIS PLAN DOES NOT DETAIL ROLES, POLICIES, TIMELINES.