The Venezuelan government has joined a growing list of countries that are expressing concern over the energy demands of cryptocurrency mining. In an effort to regulate energy consumption and ensure a stable power supply for its citizens, the Ministry of Electric Power has announced plans to disconnect crypto mining farms from the national grid. A statement from Venezuela’s National Association of Cryptocurrencies confirmed that crypto mining is now prohibited in the country.
This move comes on the heels of a recent crackdown on crypto mining in Maracay, where 2,000 mining devices were confiscated as part of an anti-corruption initiative. The ministry has stressed the need for efficient and reliable electrical service across the country, as the national power supply has been unreliable for the past decade, leading to recurring blackouts that have had a significant impact on daily life and economic activity.
The high electricity demands of cryptocurrency mining have prompted countries like China and Kazakhstan to implement strict regulations or even outright bans on the practice. In Venezuela, this crackdown on mining is reportedly part of a larger anti-corruption effort that has resulted in the arrest of several top officials. Joselit Ramírez, the former head of the National Superintendency of Cryptoassets, is among those implicated in corruption allegations.
Rafael Lacava, the governor of Carabobo state, has called on the public to collaborate in identifying illegal mining operations and report any unlawful activities. However, this is not the first time Venezuela has taken action against crypto mining. In March 2023, the country’s energy supplier shut down mining facilities nationwide as part of corruption investigations involving the state oil company. At that time, Venezuela’s attorney general, Tarek William Saab, revealed that government officials were allegedly involved in parallel oil operations with the help of the national crypto department.
In a similar vein, eight major cryptocurrency mining operators in Kazakhstan sent an open letter to President Kassym-Jomart Tokayev in 2023, expressing their concerns about high energy prices for miners.