Latam Insights: Venezuela Seizes Over 11,000 Bitcoin Miners, Paraguay Cracks Down on Illegal Bitcoin Mining

Venezuelan Authorities Announce Bitcoin Mining Ban, Confiscate Over 11,000 Miners to Face the Nation’s Energy Crisis

The Venezuelan National Power Ministry disclosed an operation to supervise the activities of high-power customers connected to the national power grid, including bitcoin miners. On social media, the ministry stated that this plan aimed to “disconnect all cryptocurrency mining farms in the country from the electrical system, avoiding the high impact on demand” produced by these activities.

Rafael Lacava, governor of the state of Carabobo, where a large part of the industrial complex of the country resides, led a series of actions that concluded in the seizure of over 11,000 ASICs and the disconnection of an undetermined number of cryptocurrency mining farms.

The actions would focus on reducing the energy destined for these activities as the country faces constant blackouts derived from deficiencies in power generation due to several climate and sanctions-related challenges. Lacava stated miners couldn’t keep their operations while the general population faced continuous energy interruptions.

Paraguay Cracks Down on Illegal Bitcoin Mining: Over 550 Miners Seized

Paraguay is seeking to thwart the illegal bitcoin mining business in its country. Paraguayan authorities have intensified their efforts to crack down on bitcoin mining activities that siphon power from the country’s power grid directly, seeking to avoid paying the electric power fees. According to local news, National Power Administration (ANDE) officials found two bitcoin mining farms using artificial intelligence (AI) software and their distribution maps.

The first of these operations was executed on May 19th in the Paraguari department, where 396 bitcoin miners were seized alongside other equipment that facilitated the conduction of these activities. The second of these seizures was conducted in the Canindeyu department on May 22, where in the same fashion, power measurement equipment was bypassed to obtain energy without paying the fees associated with the mining activity.

At this second site, ANDE officials, police, and the local prosecutor’s office seized two transformers of 1,000 KVA each, which represents 2,000 KVA of power, and 176 Bitcoin mining machines.

Central Bank of Brazil Aims to Finalize Crypto Regulations This Year

The Central Bank of Brazil has recently released its cryptocurrency regulation plan for this year, reporting on the next steps it will take to give virtual assets service providers (VASPs) and stablecoins regulatory clarity in the country.

According to local reports, the institution disclosed a plan to advance the processes to finalize cryptocurrency-related proposals by year’s end. The plan includes three phases: The first consists of a public consultation on the general standards VASPs should follow to be authorized to conduct operations on Brazilian soil.

The second phase will include an internal planning of the processes leading to the regulation of stablecoins, focusing on the payments and foreign exchange areas. Finally, the third phase entails finalizing the rules for accepting VASPs into the Brazilian market.

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