The Venezuelan government has taken a stance against cryptocurrency mining due to its excessive energy consumption. The Ministry of Electric Power in Venezuela has announced plans to disconnect crypto mining farms from the national grid in order to regulate energy usage and ensure a stable power supply for the population.
The National Association of Cryptocurrencies in Venezuela has stated that crypto mining is prohibited in the country. This decision comes after the confiscation of 2,000 cryptocurrency mining devices in Maracay as part of an anti-corruption initiative.
The ministry has emphasized the importance of providing efficient and reliable electricity service throughout Venezuela by reducing the strain caused by these energy-consuming farms. Officials believe that these measures are necessary to stabilize the national power supply, which has been unreliable for the past decade and has had a significant impact on the daily lives of residents and the overall economy.
Several countries, including China and Kazakhstan, have implemented strict regulations or bans on cryptocurrency mining due to its high electricity demands. Venezuela’s move against crypto mining is reportedly part of a broader anti-corruption effort that has led to the arrest of top officials, including Joselit Ramírez, the former head of the National Superintendency of Cryptoassets.
Rafael Lacava, governor of Carabobo state, has urged the public to collaborate in identifying illegal mining operations and report any unlawful activities. This is not the first time Venezuela has taken action against crypto mining. In March 2023, the country’s energy supplier shut down crypto mining facilities nationwide as part of corruption investigations involving the state oil company.
In Kazakhstan, eight major cryptocurrency mining operators signed an open letter to President Kassym-Jomart Tokayev in 2023, expressing concerns about high energy prices for crypto miners.
It is evident that the Venezuelan government is prioritizing stability and efficient energy usage by disconnecting crypto mining farms from the national grid. This decision aligns with the country’s ongoing efforts to combat corruption and ensure a reliable power supply for its citizens.