Venezuela’s Ministry of Electric Power has decided to disconnect cryptocurrency mining operations from the national grid.
Venezuela’s Ministry of Electric Power declared intentions to cut off cryptocurrency mining operations from the national grid in order to control the country’s high energy consumption and provide a steady supply of electricity to its people. An anti-corruption campaign recently led to the seizure of 2,000 pieces of bitcoin mining equipment.
Venezuela Steps Up Efforts to Combat Illegal Crypto Mining
The Venezuelan government has chosen to cut off all cryptocurrency mining activities from the Sistema Electrico Nacional (SEN) due to the country’s rising electricity demand. The purpose of this step is to lessen the considerable energy strain that these procedures place on the power system.
According to AlbertoNews, the Ministry underlined the necessity of removing the burden these energy-intensive farms create in order to provide effective and dependable electricity service throughout Venezuela.
Furthermore, the measure comes after other recent government initiatives, such as the seizure of thousands of mining units. According to officials, these steps are essential to stabilizing the country’s electricity supply, which has fluctuated over the last ten years. Since 2019, the frequency of blackouts has noticeably increased, impacting both the general economy and the quality of life of the locals.
The government is simultaneously fighting corruption and cracking down on cryptocurrency mining, leading to the arrest of multiple officials. Joselit Ramrez, the former director of the National Superintendency of Cryptoassets (Sunacrip), is notable for these claims.
Ramrez’s ties to Tareck El Aissami, a well-known figure who previously oversaw the country’s oil industry, underscore the investigation’s breadth, as El Aissami faces allegations of treason and money laundering, among other offenses.
Rafael Lacava, the governor of Carabobo, has also emphasized the importance of public assistance in locating illicit mining activity. He underlined the community’s responsibility to protect their electricity service and advised residents to report any unlawful actions. The goal of this community-focused enforcement strategy is to support national initiatives to reduce needless energy use.
The energy crisis led to a ban on crypto mining
Worldwide, cryptocurrency mining is well known for consuming a significant amount of electricity. Various countries, such as China and Kazakhstan, have implemented limitations or complete prohibitions on this practice in order to safeguard their electrical systems and reallocate energy to vital services.
The Venezuelan government’s approach, which prioritizes energy stability over the rapidly expanding cryptocurrency mining sector, shares a similar goal.
The main causes of the current electrical crisis in Venezuela, according to experts, are inadequate maintenance and a lack of investment in the country’s power infrastructure.
Even though officials have promised to repair the grid and have placed the blame on outside sabotage, no discernible changes have yet to materialize from their claims. Therefore, the latest government actions seek to start a longer-term recovery of the national power system in addition to addressing the current energy constraints.