Venezuela Cracks Down on Bitcoin Mining

Venezuela has declared a ban on Bitcoin mining and pledged to disconnect all mining farms from the national power grid to "alleviate pressure on the country's electricity supply."

Venezuela Cracks Down on Bitcoin Mining
Source: Freddie Collins.
  • Venezuela’s Ministry of Electric Power has started to disconnect Bitcoin and cryptocurrency mining farms from the national grid. The local government claims the move will help to "regulate excessive energy consumption."
  • An X post from Venezuela’s National Association of Cryptocurrencies states that cryptocurrency mining is now prohibited in Venezuela.
"We recommend that any person or company that has installed equipment uninstall it and store it to avoid inconvenience. We do not consider that this has a solution in the medium or short term," added the institution.
  • As part of the crackdown, over 11,000 bitcoin miners have been confiscated. This follows another "anti-corruption" initiative in the city of Maracay, where 2,000 cryptocurrency mining devices were seized.
  • Venezuela has been experiencing recurring blackouts since 2019 due to the shortages of fuel and rampant corruption that weighs down the country's economy.

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