The Venezuelan government has joined other countries in opposing crypto mining because it consumes much electricity.
A local news outlet reports that Venezuela’s Ministry of Electric Power (MPPPE) plans to disconnect crypto mining firms from the national grid. The government aims to control excessive energy use and ensure a stable power supply for the public.
Venezuela Intensifies Crackdown on Illegal Crypto Mining
An X post from Venezuela’s National Association of Cryptocurrencies stated that crypto mining is now banned across Venezuela. This move follows a recent crackdown in Maracay, Aragua state, located about 120 kilometers southwest of Caracas. As part of an anti-corruption initiative, authorities confiscated 2,000 cryptocurrency mining devices.
The Ministry stressed the importance of providing reliable electricity in Venezuela by removing high-energy-consuming crypto farms. Officials say these steps are crucial to stabilizing the national power supply, which has been unreliable for the past decade. Since 2019, the country has faced frequent blackouts, greatly affecting people’s daily lives and the economy.
The government is cracking down on cryptocurrency mining as part of a major anti-corruption effort. This has led to the arrest of many high-ranking officials, including Joselit Ramírez, who used to lead the National Superintendency of Cryptoassets (Sunacrip) and is involved in these corruption accusations.
Rafael Lacava, the Governor of Carabobo state, stressed the need for the public’s help in finding illegal mining operations. He urged citizens to report any illegal activities they see, saying that community involvement is crucial for keeping their electricity supply reliable.
However, this is not the first time Venezuela has cracked down on crypto mining. In March 2023, Venezuela’s energy supplier closed down crypto mining facilities nationwide to reorganize the national crypto department and investigate corruption involving the country’s oil company.
Energy Crisis Prompts Crackdown on Crypto Mining
Crypto mining is notorious globally for its substantial electricity requirements. Countries like China and Kazakhstan have also imposed restrictions or outright bans on the activity to protect their power grids and redirect energy to essential services. The Venezuelan government’s strategy, prioritizing energy stability over the burgeoning crypto-mining industry, reflects a similar motive.
Experts say Venezuela’s electricity crisis is mainly due to poor maintenance and a lack of investment in the power infrastructure. Officials blame sabotage but have promised to fix the grid, with no clear results yet. However, recent government actions aim to fix short-term energy problems and start a long-term power system recovery.
