Venezuela has joined the growing list of countries taking action against cryptocurrency mining due to its energy consumption.
The Venezuelan government, through its Ministry of Electric Power, has announced plans to disconnect cryptocurrency mining farms from the national power grid in an effort to regulate excessive energy usage and ensure a stable electricity supply for the population.
- TLDR
- Venezuela has announced a ban on cryptocurrency mining, disconnecting mining farms from the national power grid to reduce strain on the country’s electricity supply.
- Over 11,000 bitcoin miners have been confiscated as part of the crackdown, which aims to prioritize stable power supply for the general population.
- The move follows a recent anti-corruption initiative in the city of Maracay, where 2,000 cryptocurrency mining devices were seized.
- Venezuela has been experiencing recurring blackouts, particularly since 2019, which have significantly impacted residents’ daily lives and overall economic activity.
- The ban on cryptocurrency mining is part of a larger anti-corruption push, which has led to the arrest of several top officials, including the ex-head of the National Superintendency of Cryptoassets.
The move comes as part of a broader crackdown on crypto mining activities in the country, with authorities confiscating over 11,000 bitcoin miners in recent operations.
Governor Rafael Lacava of Carabobo state, where a large part of Venezuela’s industrial complex resides, led a series of actions resulting in the seizure of these mining devices and the disconnection of an undetermined number of cryptocurrency mining farms.
#Oficial Prohibida la minería de Criptomonedas en toda Venezuela.
— Asonacrip (Asociación Nacional de Criptomonedas) (@AsonacripVe) May 18, 2024
Venezuela’s decision to ban crypto mining is driven by the country’s ongoing energy crisis, which has led to frequent blackouts and power outages, particularly since 2019.
These interruptions have had a significant impact on the daily lives of residents and the nation’s overall economic activity.
By disconnecting mining farms from the grid, the government aims to reduce the strain on the power supply caused by these energy-intensive operations and prioritize electricity for the general population.
The crackdown on crypto mining is also linked to a larger anti-corruption initiative in Venezuela.
In the city of Maracay, authorities recently confiscated 2,000 cryptocurrency mining devices as part of this effort.
Several top officials, including the former head of the National Superintendency of Cryptoassets, Joselit Ramírez, have been arrested in connection with corruption allegations.
Governor Lacava has emphasized the importance of public collaboration in detecting and reporting illegal mining operations.
He stated that miners could not continue their activities while the general population faced continuous energy interruptions.
However, it remains unclear whether these measures are permanent or temporary, as the government works to adjust the national electric system to produce more energy.
The ban on cryptocurrency mining in Venezuela follows similar moves by other countries, such as China and Kazakhstan, which have implemented strict regulations or outright prohibitions on the practice due to its hefty electricity demands.
