Venezuela Acts Tough on Crypto Mining Amid Energy Squeeze, Disconnects Bitcoin Farms
Venezuela’s Ministry of Electric Power is disconnecting cryptocurrency mining farms from the national grid to manage energy demand and ensure a stable power supply. This measure follows the recent seizure of 2,000 Bitcoin mining machines.
Venezuela’s Government Disconnects Crypto Mining Farms to Stabilize Electricity Grid Amid Intensified Crackdown on Corruption and Illegal Activities
In response to the escalating electricity consumption, Venezuela’s government has taken the drastic step of disconnecting all cryptocurrency mining enterprises from the Sistema Electrico Nacional (SEN). This measure, while seemingly harsh, is necessary to alleviate the enormous energy load these procedures place on the electrical grid.
As AlbertoNews reported, the Ministry has underscored the importance of providing efficient and reliable electricity throughout Venezuela by relieving the strain generated by these high-energy-consuming farms.
Furthermore, the move comes after the authorities confiscated hundreds of mining machines. Officials argue that these actions are critical to stabilizing the national electricity supply, which has been inconsistent over the last decade. Frequent blackouts have significantly intensified since 2019, harming people’s quality of life and the overall economy.
The government’s crackdown on cryptocurrency mining is part of a broader anti-corruption campaign, which has recently led to the arrest of several officials. Joselit RamÃrez, the former head of Sunacrip, has been implicated in these charges. His ties to Tareck El Aissami, a prominent figure who previously controlled the country’s oil sector, highlight the far-reaching scope of the investigation. El Aissami is currently facing a range of allegations, including treason and money laundering.
Rafael Lacava, Governor of Carabobo State, has also emphasized the importance of public assistance in identifying illegal mining activity. He encouraged citizens to report unauthorized actions, highlighting the community’s involvement in protecting their electricity service. This community-focused enforcement method is intended to assist national efforts to reduce wasteful electricity consumption.
Venezuela Prioritizes Energy Security by Halting Crypto Mining to Address Persistent Electrical Crisis and Infrastructure Deficiencies
Cryptocurrency mining is well-known worldwide for its high electricity demand. Countries like China and Kazakhstan have implemented limitations or complete prohibitions on the practice to protect their power infrastructures and shift energy to important services. The Venezuelan government’s plan reflects a similar goal, prioritizing energy security over the developing crypto-mining business.
According to experts, the persistent electrical crisis is mainly caused by inadequate maintenance and a lack of investment in Venezuela’s power infrastructure. Although officials have blamed external sabotage and committed to rebuilding the grid, these pledges have yet to be fulfilled. As a result, the latest government steps aim to address current energy shortages and kickstart a long-term recovery of the national power grid.
©EconometricsÂ
