Venezuela Implements Ban on Crypto Mining in Effort to Safeguard Power Grid

The Venezuelan government has added its name to the list of countries that are not in favor of cryptocurrency mining due to its significant demand for electricity. In an effort to regulate excessive energy consumption and ensure a stable power supply for the population, Venezuela’s Ministry of Electric Power has announced plans to disconnect cryptocurrency mining farms from the national grid. The Ministry emphasized the importance of providing efficient and reliable electrical service throughout the country by relieving the strain caused by these energy-intensive farms. This move comes as part of a broader anti-corruption initiative, which has also resulted in the confiscation of 2,000 cryptocurrency mining devices in the city of Maracay.
Cryptocurrency mining has been known to consume large amounts of electricity, leading some countries like China and Kazakhstan to implement strict regulations or outright bans on the practice. Venezuela’s government’s actions against cryptocurrency mining are seen as a response to the energy demands and as part of the larger anti-corruption efforts that have led to the arrest of several high-ranking officials. Governor Rafael Lacava of Carabobo state has urged the public to collaborate in identifying illegal mining operations and report any unlawful activities they come across.
This is not the first time Venezuela has taken action against cryptocurrency mining. In 2023, the country’s energy supplier shut down crypto mining facilities nationwide as part of corruption investigations involving the state oil company. The government officials were allegedly involved in parallel oil operations with the assistance of the national crypto department. Similarly, in 2023, eight major cryptocurrency mining operators in Kazakhstan expressed their concerns about high energy prices for crypto miners in an open letter to President Kassym-Jomart Tokayev.