Amid concerns about high energy consumption, the Venezuelan government has announced measures to severe ties between cryptocurrency mining farms and the national power grid, joining the ranks of countries such as China and Kazakhstan that have regulated or prohibited crypto mining. This action stems from the need to ensure a more dependable power supply for citizens and to reduce excess energy consumption.
In a recent action, Venezuela’s Ministry of Electric Power seized 2,000 crypto mining devices, which were situated in and around the city of Maracay. This initiative is part of a larger effort to tackle corruption that has recently led to the detainment of several high-ranking government officials.
Crypto mining operations are notorious for their heavy dependence on electricity, which puts a significant burden on national power infrastructure. Notably, Venezuela has been plagued by continual power outages since 2019, causing significant disruptions to everyday life and economic activities.
The government’s clampdown on cryptocurrency mining is evidently part of an overarching strategy to root out corruption. The previous head of the National Superintendency of Cryptoassets, Joselit Ramírez, has been implicated in corruption cases related to this crackdown.
Interestingly, this isn’t the first time Venezuela has taken stringent action against crypto mining. In March 2023, the nation’s power supplier initiated a temporary blackout for crypto mining facilities as part of an investigation into alleged corrupt practices within the state-run oil industry. As the fight against corruption and energy conservation continues, the government is encouraging citizens to report any suspected illegal mining operations in their vicinity.