Venezuela bans crypto mining to protect power grid

As a researcher with personal experience living through the unreliable electricity supply in Venezuela, I understand the government’s concern regarding cryptocurrency mining and its impact on the national power grid. The frequent blackouts have significantly affected people’s daily lives and the overall economic performance for over a decade. Therefore, it is crucial for the government to take action to ensure energy stability and prioritize public services.

The Venezuelan administration has expressed disapproval towards crypto mining due to its substantial electricity usage, joining other nations with similar concerns.

Based on a report from a local news source, Venezuela’s Ministry of Electric Power (MINELS, in Spanish) has announced intentions to cut off cryptocurrency mining operations from the country’s electrical grid. This action is intended to control excessive energy usage and ensure a dependable power supply for the citizens.

As a cryptocurrency analyst, I’ve come across a noteworthy announcement from Venezuela’s National Association of Cryptocurrencies. They declared that crypto mining is no longer permitted in the country. This decision prioritizes energy stability over the developing crypto-mining sector.

In response to a recent anti-corruption drive, authorities in Maracay, Aragua state, approximately 120 km southwest of Caracas, have seized around 2,000 cryptocurrency mining devices.

Venezuela bans crypto mining to protect power grid

To ensure a dependable and powerful electrical service throughout Venezuela, the Ministry is advocating for the elimination of energy-intensive farms that put a significant strain on our power supply. This action is crucial to bring stability to our ailing national grid, which has faced numerous reliability issues over the past decade.

Since 2019, the country has faced frequent power outages, disrupting citizens’ routines and hindering the national economy’s growth.

Cryptocurrency mining is notoriously known for its significant electricity usage. To protect their power grids and allocate electricity to essential public services, countries like China and Kazakhstan have enacted strict regulations or banned the practice altogether.

According to reports, the government’s crackdown on cryptocurrency mining is believed to be an extension of its broader anti-corruption campaign, resulting in the arrests of several high-ranking officials. Notably, Joselit Ramírez, the former head of the National Superintendency of Cryptoassets (Sunacrip), finds himself at the heart of these corruption accusations.

Rafael Lacava, Carabobo state’s Governor, has underscored the significance of community engagement in identifying illicit mining practices. He urged locals to speak up and report any lawless actions, emphasizing how essential it is for the collective effort to safeguard their consistent electricity provision.

As an analyst, I’d rephrase it as follows: Back in March 2023, Venezuela took action against cryptocurrency mining activities for the second time. The country’s energy provider made the decision to shut down mining facilities across the nation. This move was aimed at restructuring Venezuela’s crypto department and conducting investigations into allegations of corruption within the state oil company.

As aanalyst, I’d rephrase that as: According to Venezuela’s Attorney General, Tarek William Saab, it has been revealed that certain government officials were suspected of operating clandestine oil projects in collaboration with the national cryptocurrency department.

In the previous year, I, along with seven other significant cryptocurrency mining companies in Kazakhstan, penned an open letter to President Kassym-Jomart Tokayev. We voiced our concerns over the exorbitant energy costs we were facing as miners in the country.

2024-05-19 11:44

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