The Venezuelan National Power Ministry announced a special operation to disconnect all bitcoin mining farms from the grid. Authorities have seized over 11,000 bitcoin miners as the government seeks to reduce the power usage from high-power customers siphoning energy from the national electric system.
Venezuelan Authorities Announce Bitcoin Mining Ban, Confiscate Over 11,000 Miners to Face the Nation's Energy Crisis
This article was published more than a year ago. Some information may no longer be current.
WRITTEN BY
SHARE
Venezuelan Authorities Seize and Disconnect Over 11,000 Bitcoin Miners Amidst 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.
However, authorities did not clarify if these actions were definitive or if these would be applied just as the national electric system is adjusted to produce more energy. Governor Lacava declared that many more bitcoin mining farms would be disconnected and that other measures, including a national executive order to reduce the energy consumption of state agencies, would be announced in the next few days.
These actions offer insight into the cryptocurrency mining industry in Venezuela after the disconnection of several bitcoin mining farms when Sunacrip, the national crypto watchdog, was linked to a corruption scheme involving the sale of sanctioned oil for cryptocurrency.
Since then, Sunacrip has been facing restructuring activities and there is currently no clarity on the legality of the cryptocurrency mining activity in the country. The former president of Sunacrip, Joselit Ramirez, and the former President of state-owned oil company PDVSA, Tareck El Aissami, have been arrested and are currently under the custody of national authorities.
What do you think about the state of cryptocurrency mining in Venezuela? Tell us in the comments section below.
