Following the incident that happened after 2,000 bitcoin mining equipment were seized as part of a recent campaign intended to combat corruption. Owing to the high electricity requirements of cryptocurrency mining, the Venezuelan government has joined the list of nations that disapprove of it.
A local news source reports that intentions to disconnect bitcoin mining farms from the national grid have been revealed by Venezuela’s Ministry of Electric Power (MPPPE). By making this change, the populace will have a reliable power supply and excessive energy use will be controlled. In Venezuela, mining cryptocurrency is forbidden, according to a post on X from the National Association of Cryptocurrencies of Venezuela. The decision puts the growing cryptocurrency mining business below energy stability.
This action came after a recent anti-corruption campaign in Maracay, Aragua state, which is roughly 120 km southwest of Caracas, resulted in the seizure of 2,000 bitcoin mining equipment. The Ministry underlined the necessity of relieving the burden these energy-intensive farms create in order to provide effective and dependable electrical service throughout Venezuela. Officials claim that these actions are necessary to stabilise the country’s electricity supply, which has been unstable for the last ten years. The nation has frequently suffered blackouts, especially since 2019, which have a big influence on people’s everyday life and the state of the economy as a whole.
The heavy electrical requirements of cryptocurrency mining have made it notorious globally. To protect their electrical infrastructure and give priority to essential public services when allocating electricity, nations like China and Kazakhstan have responded by enacting strict laws or outright banning the practice.
The government’s action against bitcoin mining is purportedly a component of a bigger campaign against corruption that resulted in the arrest of multiple high-ranking officials. Joselit Ramírez, the former leader of Sunacrip, the National Superintendency of Cryptoassets, is a pivotal person in these accusations of corruption.
The governor of Carabobo state, Rafael Lacava, is said to have stressed the value of public cooperation in identifying illicit mining activities. In addition to urging people to come forward and report any illegal activity, he emphasised the need of community involvement in preserving the stability of their electrical supply.
But this is not Venezuela’s first action to suppress cryptocurrency mining. In order to restructure the national crypto department and conduct corruption investigations involving the nation’s oil firm, Venezuela’s energy supplier closed down cryptocurrency mining operations across the country in March 2023. Tarek William Saab, Venezuela’s attorney general, revealed allegations that the national crypto department was assisting government officials in conducting parallel oil activities.
Last year, eight major cryptocurrency mining operators in Kazakhstan signed an open letter to President Kassym-Jomart Tokayev, complaining about the high energy prices for miners.