Venezuela bans cryptocurrency mining amid repeated power outages

Venezuela has banned cryptocurrency mining activities amid the country’s energy crisis with repeated blackouts.

Venezuela’s Ministry of Electricity and Energy also plans to disconnect miners from the national grid to control demand.

#official Cryptocurrency mining is prohibited throughout Venezuela.

— Asonacrip (National Cryptocurrency Association) (@AsonacripVe) May 18, 2024

Shutting down cryptocurrency mining farms will reduce demand and ensure Venezuelans have access to 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 pieces of mining equipment

The latest ban follows local reports that the Venezuelan government had seized more than 2,000 pieces of cryptocurrency mining equipment in Maracay.

The seizure is part of an anti-corruption investigation that led to the arrest of several government officials, including Joselit Ramírez, the former head of the National Cryptocurrency Supervisory Authority.

Carabao Governor Rafael Lacava called for public cooperation to improve the country’s power system in a social media post. Lacava urged the public to report illegal mining activities.

This is not the first time the Venezuelan government has halted cryptocurrency mining. In early 2023, cryptocurrency miners were banned from the country following an investigation into the operations of the state-owned oil company and the country’s cryptocurrency department.

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