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Venezuela Implements Ban on Crypto Mining Citing High Electricity Demands

Venezuela Implements Ban on Crypto Mining Citing High Electricity Demands

NEWS

Venezuela has joined the ranks of countries expressing concerns over crypto mining’s significant electricity requirements.

Reportedly, Venezuela’s Ministry of Electric Power has announced intentions to disconnect cryptocurrency mining farms from the national grid, aiming to regulate excessive energy usage and ensure a stable power supply for citizens.

An announcement from Venezuela’s National Association of Cryptocurrencies confirms the prohibition of crypto mining within the country.

This action follows a recent crackdown involving the seizure of 2,000 cryptocurrency mining devices in Maracay as part of anti-corruption efforts.

The ministry underscores the importance of providing efficient and consistent electricity service nationwide by relieving the strain caused by energy-intensive mining operations. These measures are deemed crucial for stabilizing Venezuela’s power supply, which has faced challenges over the past decade, resulting in recurring blackouts affecting daily life and economic activity.

Given the substantial electricity demands of crypto mining, countries like China and Kazakhstan have introduced strict regulations or outright bans. Countries like Italy have also moved to ban unauthorised crypto trading domains in an effort to protect local investors.

This isn’t Venezuela’s first action against crypto mining; in March 2023, the country’s energy supplier shuttered crypto mining facilities nationwide amid corruption investigations involving the state oil company.

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