Bitcoin and Cryptocurrency Mining in Venezuela: Country Imposes Restrictions

The Venezuelan government has taken strict measures against cryptocurrency mining in a bid to protect its already overloaded power grid. This decision aligns Venezuela with nations such as China and Kazakhstan, which have also restricted this activity due to high energy consumption.

Recently, Venezuela’s Ministry of Electric Energy announced that it will disconnect cryptocurrency mining farms from the national electricity grid. The objective is to mitigate exorbitant energy consumption and ensure that the electrical supply remains stable for all citizens. This announcement follows the seizure of approximately 2,000 mining equipment in the city of Maracay, in an operation that is part of a broader effort to combat corruption.

The Venezuelan electricity sector has been tested to the extreme, with frequent blackouts that severely affect daily life and the country’s economy. Authorities emphasize that the ban is vital to prevent future instabilities in power distribution, which has been a recurring problem for more than a decade.

The National Cryptocurrency Association of Venezuela highlighted in a post on its X platform that “cryptocurrency mining is prohibited in Venezuela”, reinforcing the government’s message.

#Official Cryptocurrency mining is prohibited throughout Venezuela.

— Asonacrip (National Cryptocurrency Association) (@AsonacripVe) May 18, 2024

Rafael Lacava, governor of the state of Carabobo, highlighted the importance of public collaboration in identifying and reporting illegal mining operations. He argues that this involvement is crucial to the success of government measures.

Internationally, cryptocurrency mining operators in Kazakhstan voiced their concerns through an open letter to President Kassym-Jomart Tokayev about rising energy costs, highlighting global pressure on the industry.

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