Venezuela Halts Cryptocurrency Mining Amid Power Crisis

Venezuela takes strategic step to ban crypto mining amid power crisis
Venezuela Halts Cryptocurrency Mining Amid Power Crisis

The Ministry of Electric Power in Venezuela has taken a significant step to disconnect cryptocurrency mining companies from the national power grid, SEN (Sistema Electrico Nacional). Venezuela halts cryptocurrency mining measures taken by the government to control excessive energy consumption and provide a stable supply of electricity to the population of the country.

According to a post written on X on May 18, Venezuela’s National Association of Cryptocurrencies made the confirmation of the ban on crypto mining companies. The announcement comes after authorities seized 2,000 cryptocurrency mining machines in Maracaay. The seizing of the cryptocurrency mining machines is a part of a mission of anti-corruption.

According to the Electric Ministry, reducing the load on the national grid due to the high energy consumption of mining companies is essential to ensure efficient and reliable electricity supply across the entire country as Venezuela halts cryptocurrency mining.

The strategic measure to ban cryptocurrency mining by the government of Venezuela is an initiative taken by the government on anti-corruption. This strategic measure further led to the arrest of several high-level officials.

Carabobo state governor, Rafael Lacava, said that the government needs the public's help in finding illegal mining operations, and urged the people of the country to report any illegal activity.

Since cryptocurrency mining requires a lot of electricity, some countries, such as China and Kazakhstan, have strict rules or outright bans in place to protect their power networks, which means mining is centralized in fewer locations.

“If you, a neighbor, see a house involved in this, tell them to turn off the mining equipment, or report it. When the power is cut off, you lose electricity because someone else is illegally making money.” stated state governor of Carabobo, Rafael Lacava.

Experts attribute the ongoing power outage to poor maintenance and insufficient investment in Venezuela’s power system. While officials have accused external sabotage and promised to rebuild the power grid, these promises have yet to be kept. As a result, the government’s most recent initiatives seek to address the current energy shortages and initiate a long-term restoration of the nation’s power grid.

Venezuela halts cryptocurrency mining as the country has been suffering from a power outage crisis since 2009. The most recent blackout in 2019 lasted for more than a week, leaving many towns and cities without power. These frequent outages have had a significant impact on everyday life and the economy.

This is not the first time Venezuela halts crypto mining. In September, authorities confiscated Bitcoin mining equipment and weapons from a gang-controlled prison in a raid that involved more than 11,000 troops.

Former Director of the National Superintendency of Cryptoassets, Joselit Ramírez is the main person charged in the corruption case.

Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.

Related Stories

No stories found.
logo
Analytics Insight
www.analyticsinsight.net