Venezuela Bans Crypto Mining Amid Recurring Blackouts

Venezuela
has
banned
cryptocurrency
mining
activities
amid
a
national
energy
crisis
that
is
causing
recurring
blackouts.

The
Venezuelan
Ministry
for
Electric
Energy
is
also
planning
to
disconnect
miners
from
the
national
power
grid
to
control
demand.

#Oficial
Prohibida
la
minería
de
Criptomonedas
en
toda
Venezuela.

—
Asonacrip
(Asociación
Nacional
de
Criptomonedas)
(@AsonacripVe)

May
18,
2024

Shutting
down
crypto
mining
farms
will
reduce
demand
and
ensure
the
Venezuelan
people
can
access
efficient
and
reliable
services,
the
energy
ministry

said.
The
government
did
not
say
whether
the
ban
would
be
temporary
or
permanent.

Venezuela
Seizes
2,000
Mining
Rigs

The
recent
ban
comes
after

local
reports
that
the
Venezuelan
government
had
seized
over
2,000
crypto
mining
rigs
in
Maracay.

The
seizure
is
part
of
an
anti-corruption
probe
leading
to
the
arrest
of
several
government
officials,
including
the
former
head
of
the
National
Superintendence
of
Cryptoassets,
Joselit
Ramírez.

In
a

social
media
post,
Carabao’s
governor,
Rafael
Lacava,
called
for
public
cooperation
to
improve
the
country’s
electricity
system.
Lacava
urged
the
public
to
report
unlawful
mining
activities.

It
is
not
the
first
time
the
Venezuelan
government
has
shut
down
crypto
mining.
In
early
2023,
crypto
miners
were
banned
from
the
country
after
a
probe
into
the
operations
of
the
state
oil
company
and
the
national
crypto
ministry.

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