The move is part of a recent crackdown that involves the confiscation of nearly 2,000 cryptocurrency mining devices in the fight against corruption.
The Venezuelan government has joined the list of countries that disapprove of cryptocurrency mining due to its high electricity costs.
According to a local news outlet, Venezuela’s Ministry of People’s Power for Electrical Energy has reported plans to disconnect cryptocurrency mining farms from the national grid. This measure is intended to regulate excess energy consumption and provide a guarantee of a stable electricity supply for the entire population.
According to a post on X from the Venezuelan National Cryptocurrency Association, it was reported that cryptocurrency mining is banned in the country.
The decision follows a recent operation that involved the seizure of 2,000 cryptocurrency mining devices in the city of Maracay as part of an anti-corruption program.
The ministry highlighted the need to provide both reliable and efficient energy service for the entire country by eliminating the load generated by these energy-intensive farms. According to officials, these measures are vital for the stabilization of Venezuela’s electricity supply, which has been unreliable for the past 10 years.
The South American country has been suffering back-to-back blackouts, especially since 2019, which have significantly affected the daily lives of the country’s residents and economic activity.
Cryptocurrency mining consumes a lot of electricity. In response, some countries such as China and Kazakhstan have implemented strict regulations or outright bans on the practice.
The Venezuelan government’s crackdown on cryptocurrency mining is reportedly part of a broader anti-corruption initiative, which has led to the arrest of several high-ranking officials. Joselit Ramirez, former head of the National Superintendence of Cryptoassets, is one of the key figures in the corruption allegations.
Rafael Lacava, governor of Carabobo state, has stressed the importance of citizen collaboration in the task of detecting illegal mining operations, encouraging citizens to report any illegal activity.
However, this is not Venezuela’s first crackdown on cryptocurrency mining. In March 2023, Venezuela’s energy operator shut down cryptocurrency mining facilities across the country as part of fraud investigations involving the country’s state-owned oil company.
At the time, Venezuela’s attorney general, Tarek William Saab, stated that government officials were allegedly conducting oil-related activities concurrently with the help of the national cryptocurrency department.
In 2023, eight of Kazakhstan’s leading cryptocurrency mining operators signed an open letter to President Kassym-Jomart Tokayev complaining about high energy costs for cryptocurrency mining companies.
