Venezuela is banning crypto mining to protect the national electricity grid. The move follows a recent operation in which 2,000 Bitcoin mining devices were seized as part of a crackdown on corruption.

Stream eaters from have net

More and more countries are looking at crypto mining with suspicion, due to the enormous energy consumption. According to local media, the Venezuelan Ministry of Energy plans to take crypto mining companies off the grid. This should prevent excessive energy consumption and guarantee a stable power supply for the population.

The National Cryptocurrency Association in Venezuela confirmed on social media that crypto mining is banned. Previously, 2,000 devices were seized in the city of Maracay as part of anti-corruption measures.

The ministry emphasizes that it is essential to provide an efficient and reliable power supply everywhere in Venezuela. The energy guzzlers that are crypto mining companies must therefore get off the grid. According to officials, this measure is necessary to stabilize the national power supply, which has been unreliable for a decade.

Venezuela intervenes

The country has been experiencing recurring blackouts, especially since 2019. This has a major impact on the daily lives of the population and the economy.

The high energy demand of crypto mining has not gone unnoticed by countries such as China and Kazakhstan. They have therefore introduced strict rules or even a total ban on this activity.

The Venezuelan government’s action against crypto mining is reportedly part of a broader crackdown on corruption, which has already seen several high-ranking officials arrested. Joselit Ramírez, former head of the National Cryptocurrency Supervisor, is a central figure in the corruption suspicions.

Rafael Lacava, governor of the state of Carabobo, calls on the population to cooperate in detecting illegal mining operations. Citizens are encouraged to report unlawful activities.

This is not the first time that Venezuela has tackled crypto mining. In March 2023, the national energy supplier closed crypto mining facilities across the country as part of a corruption investigation at the state oil company.

Venezuelan Attorney General Tarek William Saab then stated that government officials had allegedly been running parallel oil operations with the help of the country’s crypto department.

Elsewhere, in 2023, eight major crypto mining companies in Kazakhstan signed an open letter to President Kassym-Jomart Tokayev. They complained about the high energy prices for crypto miners.

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