In a bold move, the Venezuelan government has banned cryptocurrency mining to protect its power grid from excessive energy demands. The Ministry of Electric Power announced plans to disconnect all crypto mining farms from the national electricity grid. This decisive step aims to stabilize the power supply, which has been plagued by recurrent blackouts, especially since 2019.
The National Association of Cryptocurrencies confirmed the prohibition through a recent X post, highlighting the government’s efforts to regulate energy consumption. This ban comes on the heels of a major crackdown in Maracay, where authorities seized 2,000 mining devices in an anti-corruption initiative.
Officials underscore the necessity of this measure, citing the need to provide efficient and reliable electricity to all Venezuelans. The country has faced significant challenges with its power infrastructure, impacting daily life and economic activities. By cutting off the energy-intensive crypto mining farms, the government hopes to alleviate the strain on the national grid.
Venezuela’s action against crypto mining aligns with global trends, as countries like China and Kazakhstan have also imposed strict regulations or outright bans to manage the high electricity demands of cryptocurrency mining. The recent crackdown in Venezuela is part of a broader anti-corruption campaign, which has already led to the arrest of several high-ranking officials, including Joselit Ramírez, the former head of the National Superintendency of Cryptoassets.
Rafael Lacava, the governor of Carabobo state, has called for public cooperation in identifying illegal mining operations, encouraging citizens to report any suspicious activities. This is not the first instance of Venezuela taking action against crypto mining; in March 2023, the country’s energy supplier shut down mining facilities nationwide amid corruption investigations involving the state oil company.
Attorney General Tarek William Saab revealed that government officials were allegedly involved in parallel oil operations facilitated by the national crypto department. This crackdown highlights Venezuela’s ongoing struggle with corruption and its impact on the nation’s resources.
Globally, the energy consumption of cryptocurrency mining continues to spark controversy. In Kazakhstan, for instance, major mining operators protested against high energy prices in an open letter to President Kassym-Jomart Tokayev in 2023.
Venezuela’s latest move against crypto mining underscores the government’s commitment to stabilizing its power grid and ensuring a reliable energy supply for its citizens.