This comes after a recent raid that included the seizure of 2,000 crypto mining devices in an effort to combat corruption.
The Venezuelan government has joined the list of nations that have banned cryptocurrency mining owing to its high power consumption.
The Venezuelan government has reportedly announced intentions to cut power to crypto mining farms, according to a local news source. A reliable power supply for the population and regulation of excessive energy usage are the goals of the move.
According to an X post by the National Association of Cryptocurrencies in Venezuela, crypto mining is explicitly forbidden in the country. The flourishing cryptocurrency mining business has taken a back seat to energy reliability in this decision.
As part of an anti-corruption drive, this action followed the seizure of 2,000 crypto mining equipment in Maracay, Aragua state, which is located around 120 km south-west of Caracas.
In order to provide effective and dependable electricity service throughout Venezuela, the Ministry of Energy and Mines stressed the importance of removing the burden of these energy-hungry farms. Officials claim these steps are necessary to stabilize the country’s electricity supply, which has been unstable for ten years.
Recurring blackouts have had a major influence on the country’s economy and the lives of its citizens, especially since 2019.
The enormous power requirements of cryptocurrency mining have made it renowned all around the globe. As a result, nations like Kazakhstan and China have taken drastic measures to protect their electricity infrastructure and give priority to essential public services by imposing strict rules or outright bans on the practice.
Reportedly leading up to the arrest of many high-ranking officials, the government has taken action against crypto mining as part of a broader anti-corruption drive. One important person involved in these accusations of corruption is Joselit Ramírez, who was the former chairman of the National Superintendency of Cryptoassets.
According to reports, Rafael Lacava, the governor of Carabobo state, has stressed the need for the public to work together in order to uncover illicit mining activities. In order to ensure the dependability of their power supply, he emphasized the need of community engagement and urged individuals to report any illegal activity.
Nonetheless, Venezuela has taken other measures in the past to counter crypto mining. As part of efforts to restructure the country’s crypto department and address corruption allegations pertaining to the oil firm, Venezuela’s energy provider nationally shut down crypto mining facilities in March 2023.
Tarek William Saab, the attorney general of Venezuela, said that the national crypto department reportedly helped government officials operate parallel oil businesses.
Eight prominent Kazakh crypto miners expressed their displeasure with the country’s high energy rates in an open letter to President Kassym-Jomart Tokayev last year.
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