Venezuela seizes 11,000 Bitcoin miners and bans mining to stabilize power grid

Venezuela has joined the list of countries taking steps against cryptocurrency mining due to its energy consumption.

The Venezuelan government, through its Ministry of Power, announced plans to disconnect cryptocurrency mining farms from the national power grid to regulate excessive energy use and ensure a stable power supply to the population.

• TLDR
• Venezuela has announced a ban on cryptocurrency mining and disconnecting mining farms from the national power grid in a bid to reduce the strain on the country’s power supply.
• More than 11,000 Bitcoin miners have been seized as part of a crackdown that prioritizes reliable power supplies for the general public.
• The move follows the city of Maracay’s recent anti-corruption initiative, which saw the seizure of 2,000 cryptocurrency mining devices.
• In Venezuela, especially since 2019, repeated power outages have had a significant impact on residents’ daily lives and overall economic activity.
• The cryptocurrency mining ban is part of a larger anti-corruption effort that has led to the arrest of several high-ranking officials, including the former head of the National Cryptocurrency Supervisory Authority.

The move comes as part of a broader crackdown on cryptocurrency mining activities in the country, with authorities seizing more than 11,000 Bitcoin miners in recent operations.

Rafael Lacava, governor of Carabobo state, home to much of Venezuela’s industrial complex, has led a series of actions to confiscate these mining rigs and disconnect an unknown number of cryptocurrency mining farms. .

#official Cryptocurrency mining is prohibited throughout Venezuela.

— Asonacrip (National Cryptocurrency Association) (@AsonacripVe) May 18, 2024

Venezuela’s decision to ban cryptocurrency mining follows the country’s ongoing energy crisis, which has led to frequent blackouts and blackouts, especially since 2019.

This disruption had a significant impact on the daily lives of residents and the overall national economy.

By disconnecting mining sites from the power grid, the government aims to reduce the strain on power supplies from these energy-intensive operations and prioritize electricity for the general public.

The crackdown on cryptocurrency mining is also tied to Venezuela’s larger anti-corruption plan.

Maracay city authorities recently confiscated 2,000 cryptocurrency mining devices as part of these efforts.

Several senior officials have been arrested on corruption charges, including former head of the National Crypto Asset Supervision Agency, Joselit Ramírez.

Governor Lacava emphasized the importance of public cooperation in detecting and reporting illegal mining activities.

He said miners cannot continue their activities while the general public faces ongoing energy outages.

But it’s still unclear whether these measures will be permanent or temporary as the government adjusts the country’s power system to produce more energy.

Venezuela’s ban on cryptocurrency mining follows similar moves by other countries such as China and Kazakhstan. These countries have implemented strict regulations or outright bans on mining due to their enormous demand for electricity.