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Venezuela Bans Crypto Mining Amid Power Supply Concerns and Anti-Corruption Efforts

The Venezuelan government has joined the ranks of countries that have opposed crypto mining due to its significant electricity consumption.

A local news outlet reports that Venezuela’s Ministry of Electric Power plans to disconnect cryptocurrency mining farms from the national grid.

This initiative aims to regulate excessive energy use and ensure a stable power supply for the population.

An X post from Venezuela’s National Association of Cryptocurrencies confirmed that crypto mining is now prohibited in Venezuela.

This development follows a recent crackdown in which authorities confiscated 2,000 cryptocurrency mining devices in Maracay as part of an anti-corruption effort.

The ministry highlighted the necessity of providing efficient and reliable electrical service across Venezuela by reducing the strain from high-energy-consuming mining farms.

Officials argue that these measures are crucial to stabilizing the national power supply, which has been inconsistent for the past decade.

Venezuela has faced recurring blackouts, especially since 2019, severely affecting residents’ daily lives and the broader economy.

Cryptocurrency mining’s heavy electricity demands have prompted other countries, such as China and Kazakhstan, to enforce strict regulations or bans on the practice.

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The Venezuelan government’s action against cryptocurrency mining is part of a broader anti-corruption campaign, which has resulted in the arrest of several top officials.

Joselit Ramírez, the former head of the National Superintendency of Cryptoassets, is a central figure in these corruption allegations.

Rafael Lacava, the governor of Carabobo state, has emphasized the importance of public cooperation in identifying illegal mining operations, urging citizens to report any illicit activities.

This is not Venezuela’s first measure against crypto mining.

In March 2023, the country’s energy supplier shut down crypto mining facilities nationwide as part of corruption investigations involving the state oil company.

At that time, Venezuela’s attorney general, Tarek William Saab, revealed that government officials were allegedly conducting parallel oil operations with the help of the national crypto department.

In 2023, eight major cryptocurrency mining operators in Kazakhstan sent an open letter to President Kassym-Jomart Tokayev, complaining about high energy prices for crypto miners.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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