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20/05/24
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Venezuela Reportedly Planning to Prohibit Crypto Mining
Cryptocurrency mining’s huge electricity usage has prompted the government of Venezuela to join countries frowning at entities into such activities. According to a local report, Venezuela’s Ministry of Electric Power is planning to disconnect crypto mining farms from the national grid.
The essence of the plan is to ensure that excessive electrical energy is regulated for people to enjoy stable power supply. The country’s National Association of Cryptocurrencies revealed that the government has banned cryptocurrency mining.
The authorities had previously confiscated 2,000 crypto mining devices in the city of Maracay as they work towards eliminating corruption through an anti-corruption initiative. The electric power ministry noted that it is necessary to provide dependable and efficient electrical services across the country.
However, this requires the elimination of the strain caused by mining farms using huge amounts of electric power. Putting these measures in place will ensure the stability of the national power supply, having been undependable over the past decade.
There have been recurrent blackouts over the past five years, significantly affecting the daily activities of the residents, as well as the general economic activity. Similarly, countries like Kazakhstan and China have established and implemented strict regulations or a ban on crypto mining.
Venezuela’s government is moving against crypto mining as part of its action against corruption, which a number of top officials are allegedly involved in. Corruption allegations have been leveled against the former head of the National Supertendency of Cryptoassets, Joselit Ramírez.
The government previously acted against cryptocurrency mining operations last year, shutting down cryptocurrency mining facilities across the country. This was connected to investigations into corruption involving the oil company owned by the state.
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