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Venezuela Enforces Crypto Mining Ban Over High Energy Consumption

In this post:

  • Venezuela has banned cryptocurrency mining to control electricity usage and ensure a stable power supply.
  • The South American country implemented the ban following the seizure of over 2,000 mining machines in Maracay.
  • The Venezuelan Ministry of Electrical Energy announced the disconnection of all crypto mining farms to reduce demand on the national electrical system.

Venezuela has stepped up to the plate by shutting down cryptocurrency mining operations throughout the nation, according to recent reports. The Ministry of Electric Power claims this drastic action is essential to manage the monstrous electricity consumption and ensure consistent power for everyone.

Immediate Disconnection of Mining Farms

Friday was a turning point as the Venezuelan Ministry of Electrical Energy (MPPPE) launched a rigorous control plan targeting high-energy-consuming users, particularly crypto miners.

The MPPPE stated on Instagram, “We are cutting off all cryptocurrency mining farms from the national electrical system.”

Also Read: Antminer L9 Coming Soon: Will Change Litecoin and Dogecoin Mining?

Their goal? To curb the surge in demand and maintain reliable, efficient service across Venezuela. This announcement came right after the authorities seized over 2,000 crypto mining units in Maracay, signaling a serious crackdown.

Government’s Actions Cause Rampant Energy Crisis

Venezuela’s struggle with electricity is not new. The country has been in a power pinch since 2009, hitting a severe low in 2019 with massive blackouts. These outages disrupted life and economic activities, often leaving cities in the dark for days. The government pins some blame on sabotage but also recognizes a desperate need for system upgrades.

Amid these challenges, Rafael Lacava, Carabobo’s governor, urged citizens to report illegal mining activities. In a public plea, he stated:

“If you see a house that you know is mining crypto, tell that person to turn off the farm, or just report it directly. Because they are deducting power straight from the grid so that they can earn some money. And we will be left without electrical service if they don’t stop.”

He added that these farms consume so much power that lights might go out completely in a nationwide blackout.

Corrupt Practices in Government Ministries  

Despite these measures, the crackdown leads to a trail of corruption issues. Last year, the Venezuelan government targeted corrupt activities within major state institutions like Petróleos de Venezuela (PDVSA) and the National Superintendency of Crypto Assets (Sunacrip), leading to numerous arrests.

Related: How Bitcoin Mining Can Help With Environmental Cleanup

Notably, Joselit Ramírez of Sunacrip and Tareck El Aissami, a former oil minister, were apprehended for serious allegations, including treason and misuse of power.

As the situation unfolds, the Venezuelan Observatory of Social Conflict reported over 200 protests triggered by frequent power outages in the first few months of the year, highlighting the public’s frustration and the dire state of Venezuela’s electrical infrastructure.

DisclaimerThe information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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