In an effort to protect its strained power grid, the Venezuelan government has implemented strict measures against cryptocurrency mining. This move aligns Venezuela with other nations like China and Kazakhstan, who have also restricted this activity due to its high energy consumption.
The Ministry of Electric Energy in Venezuela recently announced that it will disconnect cryptocurrency mining farms from the national electricity grid. The objective is to reduce excessive energy consumption and ensure a stable electricity supply for all citizens. This announcement comes after the seizure of around 2,000 mining equipment in Maracay, as part of a larger effort to combat corruption.
Venezuela’s electricity sector has faced significant challenges, with frequent blackouts that have had a severe impact on daily life and the country’s economy. Authorities emphasize that this ban is crucial to preventing future power distribution instabilities, a problem that has persisted for over a decade.
The National Cryptocurrency Association of Venezuela, in a post on its X platform, emphasized that “cryptocurrency mining is prohibited in Venezuela,” further reinforcing the government’s message.
Rafael Lacava, the governor of Carabobo state, highlighted the importance of public collaboration in identifying and reporting illegal mining operations. He believes that this involvement is crucial for the success of the government’s measures.
Internationally, cryptocurrency mining operators in Kazakhstan expressed their concerns about rising energy costs through an open letter to President Kassym-Jomart Tokayev, shedding light on the global pressure facing the industry.
Disclaimer: The views and opinions expressed in this article, whether by the author or anyone mentioned, are solely for informational purposes and do not constitute financial, investment, or any other form of advice. Investing or trading cryptocurrencies carries a risk of financial loss.
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