Venezuela Bans Cryptocurrency Mining to Preserve National Power Supply
Summary:
Venezuela's Ministry of Electric Power plans to disconnect cryptocurrency mining farms from the national grid to regulate high energy consumption and ensure a stable power supply. Cryptocurrency mining is now prohibited throughout the country, prioritizing energy stability over the burgeoning industry. This move connected to an anti-corruption initiative involving several top officials, follows the recent seizure of 2,000 cryptocurrency mining devices. Public collaboration in identifying illegal mining operations is strongly encouraged. Venezuela's crackdown on crypto mining activities is not new, with its energy supplier having previously shut down mining facilities nationwide.
Venezuela has joined the bandwagon of countries casting suspicion on cryptocurrency mining due to its extensive power requirements. A local report reveals that plans to disconnect crypto mining operations from the national electricity grid have been proposed by the Venezuelan Ministry of Electric Power (MPPPE). This initiative seeks to curb excess power consumption and secure a stable electricity supply for citizens. A post from the National Association of Cryptocurrencies in Venezuela declared a country-wide ban on crypto mining, emphasizing energy stability over the growth of the crypto mining industry.
The prohibition follows a recent action where 2,000 crypto mining devices were impounded in Maracay, located about 120 kilometers southwest of Caracas, under an anti-corruption campaign, reports the National Association of Cryptocurrencies. The Ministry stressed the importance of efficient and dependable power service across Venezuela, achievable by alleviating the burden of high-energy-consuming farms. As explained by government officials, these steps are crucial to ensure a stable national power supply, which has been erratic for the past ten years.
Recurrent power outages, particularly since 2019, have majorly affected Venezuela's residents and economy. Owing to its high electricity usage, countries such as China and Kazakhstan have imposed stringent regulations or complete bans on cryptocurrency mining, intending to protect their power infrastructure and allocate energy to crucial public services.
Reportedly, the Venezuelan government's stance against cryptocurrency mining is part of a broader anti-corruption campaign, resulting in the arrest of several senior officials. Among those is Joselit Ramírez, the former chief of the National Superintendency of Cryptoassets (Sunacrip), who is central to these corruption claims.
Rafael Lacava, the Governor of Carabobo state, has underscored the significance of public help in spotting illicit mining operations and has urged residents to report any illegal activities, highlighting their crucial role in preserving a stable power supply.
However, this isn't Venezuela's first move against crypto mining. In March 2023, the country's power supplier shut down nationwide crypto mining facilities to restructure the national crypto department and probe corruption allegations linked to the national oil company. Venezuela's Attorney General, Tarek William Saab, revealed that government officials were purportedly running oil operations alongside the national crypto department.
Additionally, last year in Kazakhstan, eight major cryptocurrency mining firms sent an open letter to President Kassym-Jomart Tokayev, voicing their concerns about the high energy costs for mining operations.
Published At
5/19/2024 11:08:14 AM
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