The Venezuelan government has taken drastic measures against cryptocurrency mining in an effort to protect its already strained power grid. This decision puts Venezuela in line with nations such as China and Kazakhstan, which have also restricted this activity due to its high energy consumption.
Recently, the Ministry of Electrical Energy of Venezuela announced that it will disconnect cryptocurrency mining farms from the national power grid. The goal is to mitigate the excessive energy consumption and ensure that the electricity supply remains stable for all citizens. This announcement follows the seizure of approximately 2,000 mining equipment in the city of Maracay, as part of a broader effort to combat corruption.
The Venezuelan electricity sector has been pushed to the extreme, with frequent blackouts severely affecting daily life and the country’s economy. Authorities emphasize that the ban is vital to prevent future instabilities in energy distribution, which has been a recurring problem for over a decade.
The National Cryptocurrency Association of Venezuela highlighted in a post on its X platform that “cryptocurrency mining is prohibited in Venezuela,” reinforcing the government’s message.
Rafael Lacava, governor of the state of Carabobo, emphasized the importance of public collaboration in identifying and reporting illegal mining operations. He argues that this involvement is crucial for the success of government measures.
Internationally, cryptocurrency mining operators in Kazakhstan have expressed their concerns through an open letter to President Kassym-Jomart Tokayev about the rising energy costs, highlighting the global pressure on the industry.
Disclaimer: The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment, or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.
Editor’s Choice:
Bitcoin Continues to Rise, Approaching $64,000, while TON, PEPE, and SHIB Grow 6%
Metaplanet Adopts Bitcoin as a Store of Value in Response to Rising Japanese Debt.
