Venezuela cracks down on cryptocurrency mining activity
Venezuela's Ministry of Electric Power has announced plans to disconnect cryptocurrency mining farms from the national grid.
This decision aims to manage high energy demand and ensure reliable energy supply to citizens.
This comes in the wake of the confiscation of 2,000 cryptocurrency mining machines as part of an anti-corruption campaign.
In response to the growing demand for electricity, the Venezuelan government has decided to separate all cryptocurrency mining operations from Sistema Electrico Nacional (SEN).
This measure aims to reduce the significant burden that mining operations impose on the energy system.
The Department of Energy explained the importance of providing efficient and reliable electric service throughout Venezuela by eliminating the stress caused by mining farms with high energy consumption.
The move follows recent government actions that included the confiscation of thousands of mining units.
Officials stress that these measures are necessary to stabilize the national energy supply, which has been unstable over the past decade.
Power outages have worsened since 2019, negatively affecting the lives of citizens and the economy.
The campaign against cryptocurrency mining coincides with a broader campaign against corruption, which has led to the arrest of several officials.
Cryptocurrency mining is known for its large electricity requirements.
Countries such as China and Kazakhstan have imposed restrictions or bans on this activity to protect power grids and direct energy to essential services.
Venezuela takes a similar approach, prioritizing energy stability over a thriving cryptocurrency mining industry.
Experts point to poor maintenance and lack of investment in Venezuela's energy infrastructure as main reasons for the ongoing electricity crisis.
Although officials accused external sabotage and pledged to modernize the network, these promises have not yet been fulfilled.
