Venezuela Bans Crypto Mining Due to Power Crisis

Bitcoin Mining

Venezuela’s National Power Ministry has taken action against Bitcoin mining operations by disconnecting them from the country’s electricity grid and seizing more than 11,000 Bitcoin miners.

This move aims to curb the high energy consumption associated with these mining farms, which has been straining Venezuela’s power resources.

Venezuela’s Crackdown on Bitcoin Mining Farms

Venezuela’s National Power Ministry, under the leadership of Rafael Lacava, governor of Carabobo state, has launched a crackdown on Bitcoin mining farms operating on the country’s power grid. The ministry’s operation is aimed at monitoring high-energy consumers, particularly Bitcoin miners, to relieve pressure on Venezuela’s electricity supply. The initiative seeks to disconnect all cryptocurrency mining operations from the national power system due to their significant impact on energy demand.

In Carabobo, a crucial industrial region of Venezuela, the enforcement action resulted in the seizure of over 11,000 ASICs (application-specific integrated circuits) and the closure of multiple Bitcoin mining facilities. This action follows previous government efforts, which included the confiscation of 2,000 cryptocurrency mining devices as part of broader anti-corruption measures.

Venezuela Cracks Down on Crypto Mining Amid Power Crisis

Venezuela’s National Power Ministry has taken decisive action to address the strain on the country’s power supply caused by high-energy-consuming cryptocurrency mining farms. The crackdown, led by officials including Rafael Lacava, governor of Carabobo state, aims to ensure reliable and efficient electrical service nationwide. This move is crucial for stabilizing Venezuela’s notoriously unreliable power grid, which has suffered frequent blackouts since 2019, impacting economic activity and daily life significantly.

Cryptocurrency mining operations, known for their intense energy consumption, have exacerbated Venezuela’s power challenges. Similar actions have been taken by other nations like China and Kazakhstan, where mining activities have been banned or heavily regulated. Venezuela’s efforts against crypto mining are part of a broader anti-corruption drive that has also seen senior officials arrested. Governor Lacava has urged the public to report illegal mining activities, emphasizing community involvement in enforcement efforts.

Venezuela’s Previous Actions Against Crypto Mining

In March 2023, Venezuela’s energy supplier undertook a nationwide shutdown of cryptocurrency mining facilities as part of a corruption probe linked to the national oil company, PDVSA. Attorney General Tarek William Saab disclosed that officials had engaged in parallel oil operations leveraging their positions and authority, in collaboration with the national crypto department. This move marked a significant crackdown on crypto mining amid broader anti-corruption efforts in Venezuela.

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Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.


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  • Asad

    Asad is a dynamic and talented cryptocurrency content author who brings a wealth of knowledge and enthusiasm to every article. With a deep understanding of blockchain technology and a passion for digital assets, Asad's writing is both informative and engaging.

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