Venezuela Prohibits Crypto Mining Over Grid Concerns

Following a recent anti-corruption raid that seized 2000 cryptocurrency mining devices, Venezuela prohibits crypto mining to protect the power grid.

Due to its high electrical needs, Venezuela has banned crypto mining.

According to local media, Venezuela’s Ministry of Electric Power (MPE) aims to disconnect Bitcoin mining facilities from the grid. The move aims to curb energy waste and ensure a reliable power supply.

The National Association of Cryptocurrencies of Venezuela banned crypto mining in an X post. Energy stability is prioritized over crypto-mining growth.

As part of an anti-corruption investigation, 2,000 cryptocurrency mining devices were seized in Maracay, Aragua state, 120 kilometers southwest of Caracas.

The Ministry said avoiding strain from these high-energy-consuming farms is crucial to providing stable and efficient electricity across Venezuela. Officials say these steps are needed to stabilize the nation’s power supply, which has been erratic for a decade.

Blackouts have plagued the country since 2019, affecting citizens’ daily lives and the economy.

Worldwide, cryptocurrency mining is known for its high electricity needs. China and Kazakhstan have banned protecting their power infrastructure and allocating energy to critical public services.

Several prominent officials were arrested in a government anti-corruption crackdown on Bitcoin mining. Joselit Ramírez, the former head of Sunacrip, is a crucial figure in corruption charges.

Carabobo Governor Rafael Lacava has stressed the necessity of public involvement in discovering illegal mining. He urged individuals to report illegal activity, emphasizing the need for community involvement in electrical reliability.

Venezuela has previously opposed crypto mining. Venezuela’s energy supplier shut down crypto mining facilities statewide in March 2023 to reorganize the crypto department and oil business corruption investigations.

Tarek William Saab, Venezuela’s attorney general, claimed government officials ran parallel oil operations with the crypto department’s help.

Eight big Kazakhstani bitcoin miners wrote an open letter to President Kassym-Jomart Tokayev protesting excessive energy prices last year.