The Ministry of Electric Power of Venezuela will disconnect all bitcoin mining rigs from the grid. This approach reduces agricultural energy usage and ensures dependable power for people. Local news outlet AlbertoNews published the development on May 18.
“The purpose is to disconnect all cryptocurrency mining farms in the country from the SEN [National Electrical System], avoiding the high demand impact, which allows us to continue offering an efficient and reliable service to all Venezuelans,” the Ministry said on Instagram.
After seizing 2,000 bitcoin mining devices in an anti-corruption effort that jailed numerous state officials, the administration made this judgment.
The National Superintendency of Cryptoassets (Sunacrip) is overhauled after the arrest of Joselit Ramírez. Ramírez is tied to Tareck El Aissami, a former Petroleos de Venezuela (PDVSA) president and former Petroleum Minister, who faces allegations of treason, embezzlement, influence abuse, money laundering, and criminal association.
Venezuela has had an electrical issue since 2009, exacerbated by 2019 blackouts that left communities without power for seven days. Frequent outages have hurt life and business.
Carabobo Governor Rafael Lacava acknowledged bitcoin mining farm limits due to excessive energy use and invited citizens to report unlawful mining.
“If you, neighbor, see a house you know, tell that person to turn off the farm, or else report it, because when they turn off the light, you have to give light to a man so he can earn some reales (money), and you are left without electrical service,” Lacava
AlbertoNews reports that experts blame inadequate power grid maintenance and lack of investment, while the administration blames sabotage and vows to improve the state-controlled electricity network.
Bitcoin and cryptocurrency mining are energy-intensive. China and Kazakhstan have prohibited mining to preserve their power systems, centralizing mining in fewer sites, which poses security issues as a few miners dominate block discovery.
Venezuela closed mining facilities to reduce the strain on its electrical infrastructure and comply with worldwide cryptocurrency mining environmental standards.
The closure is part of Venezuela’s anti-corruption drive. The government’s seizure of 2,000 mining machinery and arrests of officials demonstrate its commitment to fighting industry misconduct.
Venezuela’s cryptocurrency mining future is questionable. New limitations may reduce mining, but the government’s vow to improve the electricity system may lead to more sustainable mining.
Venezuela’s efforts are part of a worldwide bitcoin mining sustainability and regulatory debate. Crypto mining changes when nations prohibit and regulate. Venezuela’s energy policy may affect other countries.
