Cryptocurrencies

The Venezuelan government has joined the list of countries that have objected to cryptocurrency mining

The Venezuelan government has joined the list of countries that have objected to cryptocurrency mining due to its huge electricity requirements.

According to a local media outlet, the Venezuelan Ministry of Electric Power (MPPPE) has revealed plans to disconnect cryptocurrency mining farms from the national grid. This step aims to regulate excessive energy consumption and ensure stable energy supply to the population.

Post X from the National Cryptocurrency Association of Venezuela stated that cryptocurrency mining is banned throughout Venezuela. The move prioritizes energy stability over the booming cryptocurrency mining industry.

The move follows a recent crackdown that included the confiscation of 2,000 cryptocurrency mining devices in Maracay, Aragua state, about 120 kilometers southwest of Caracas, as part of an anti-corruption initiative.

Source: National Cryptomonidad Association

The Ministry stressed the need to provide efficient and reliable electrical service throughout Venezuela by eliminating the pressure caused by these farms with high energy consumption. According to officials, these measures are necessary to stabilize the national energy supply, which has been unreliable over the past decade.

The country has witnessed frequent power outages, especially since 2019, which has greatly affected the daily lives of residents and overall economic performance.

Cryptocurrency mining is notorious around the world due to its huge electricity requirements. In response, countries such as China and Kazakhstan have implemented strict regulations or outright banned the practice to protect their energy infrastructure and prioritize the allocation of energy to critical public services.

The government’s move against cryptocurrency mining is said to be part of a larger anti-corruption campaign, which has led to the arrest of several senior officials. Joselet Ramírez, former head of the National Crypto Asset Supervision Authority (Sunacrip), is a key figure in these corruption allegations.

Related: GoMining CEO bullish on Bitcoin: “Mining business still profitable”

Rafael Lacava, Governor of Carabobo State, reportedly emphasized the importance of public cooperation in exposing illegal mining operations. He encouraged citizens to come forward and report any illegal activities, stressing the vital role community participation plays in protecting the reliability of their electricity supply.

However, this is not the first action Venezuela has taken against cryptocurrency mining activities. In March 2023, the Venezuelan energy supplier closed cryptocurrency mining facilities across the country to reorganize its national cryptocurrency division and corruption investigations involving the country’s oil company.

Venezuelan Attorney General Tarek William Saab a statement Government officials were allegedly running parallel oil operations with the help of the National Cryptocurrency Administration.

Last year, eight of Kazakhstan’s major cryptocurrency mining companies signed an open letter to President Kassym-Jomart Tokayev, complaining about high energy prices for miners.

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