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HomeNewsVenezuela Bans the Mining of Cryptocurrencies to Reduce the Strain on the...

Venezuela Bans the Mining of Cryptocurrencies to Reduce the Strain on the Power Grid and Ensure a Stable Power Supply for Residents amid the ongoing Crisis.

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  • The government’s action follows the confiscation of 2,000 mining devices in Maracay and underscores its crackdown on unregulated cryptocurrency operations.
  • The public is encouraged to report illegal mining activities to support the government’s efforts to stabilize the national power supply.

Venezuela has issued a ban on the mining of cryptocurrencies in order to reduce the strain on the national power grid, according to the Ministry of Electrical Energy.

With this decision , cryptocurrency mining facilities will be disconnected from the national grid (SEN) to reduce the high energy consumption and ensure a more reliable power supply for citizens .

The National Association of Cryptocurrencies announced this policy change on May 18 via a social media post on X, as described in a report by Albertonews.

The ban is part of Venezuela’s broader strategy to stabilize its electricity supply, which has experienced significant disruptions over the past decade.

Chronic problems with the power grid have been an ongoing issue since 2009, with the situation worsening in 2019 when numerous cities were left without power for extended periods of time due to prolonged blackouts.

These blackouts had a serious impact on daily life and the economy in general, prompting the government to take decisive action.

Cryptocurrency mining is known for its high electricity demand

Similar to other countries, such as China and Kazakhstan, the ban in Venezuela follows recent government efforts to curb unregulated mining activities.

This includes a recent operation in Maracay, where authorities confiscated 2,000 cryptocurrency mining devices as part of an anti-corruption crackdown.

In addition, Rafael Lacava, the governor of the state of Carabobo, has appealed to the public to report illegal mining activities. This community engagement should help in the ongoing efforts to stabilize the country’s electricity supply.

While experts often cite inadequate maintenance and insufficient investment in infrastructure as the cause of Venezuela’s energy problems, the government attributes the interruptions to sabotage. It has pledged to overhaul the outdated, state-controlled electricity infrastructure.

The crackdown on cryptocurrency mining is not new in Venezuela

Previous government actions included the seizure of Bitcoin mining equipment at a gang-controlled prison last September and a suspension of Bitcoin mining in March during an investigation into corruption at Petróleos de Venezuela SA (PDVSA), the state oil company.

With these measures, the Venezuelan government aims toprioritize electricity distribution for private households and essential needs over high-consumption industries such as cryptocurrency mining.

This policy reflects a growing global trend where countries are regulating or banning cryptocurrency mining to control energy consumption and protect the integrity of the electricity grid.

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: info@ethnews.com Phone: +49 160 92211628
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