Venezuela has joined a growing list of countries restricting cryptocurrency mining due to its substantial electricity demands. The Ministry of Electric Power announced plans to disconnect mining farms from the national grid to manage excessive energy consumption and ensure a stable power supply for residents.
Recent Crackdown and Anti-Corruption Efforts
This decision comes after authorities confiscated 2,000 cryptocurrency mining devices in Maracay, part of a broader anti-corruption initiative. The National Association of Cryptocurrencies confirmed on X that crypto mining is now prohibited in the country.
Stabilizing the Power Grid
Officials highlighted the need to provide efficient and reliable electrical service by eliminating the strain caused by energy-intensive mining operations. Venezuela has struggled with recurring blackouts, particularly since 2019, disrupting daily life and economic activities.
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Global Context and Previous Actions
Other countries, including China and Kazakhstan, have also imposed strict regulations or outright bans on crypto mining to address similar energy concerns. Venezuela’s recent measures are part of a larger anti-corruption push that has resulted in the arrests of several top officials, including Joselit Ramírez, the former head of the National Superintendency of Cryptoassets.
Encouraging Public Collaboration
Rafael Lacava, governor of Carabobo state, emphasized the importance of public cooperation in identifying illegal mining operations, urging citizens to report any unlawful activities.
This is not Venezuela’s first action against crypto mining. In March 2023, the nation’s energy supplier shut down mining facilities nationwide amid corruption investigations involving the state oil company. At the time, Attorney General Tarek William Saab revealed that officials were allegedly running parallel oil operations with assistance from the national crypto department.
Elsewhere, in 2023, eight major cryptocurrency mining operators in Kazakhstan sent an open letter to President Kassym-Jomart Tokayev, protesting high energy prices for miners, reflecting the global challenges and responses to the energy demands of crypto mining.
