Venezuela Bans Cryptocurrency Mining Amid Repeated Power Outages

Venezuela has prohibited cryptocurrency mining activities due to a national energy crisis that has led to repeated power outages.

The Venezuelan Ministry of Electricity also plans to disconnect miners from the national grid to control demand.

The Ministry of Energy stated that shutting down cryptocurrency mining farms will reduce demand and ensure that the Venezuelan people can access efficient and reliable services. The government has not disclosed whether this ban is temporary or permanent.

Venezuela Seizes 2,000 Mining Rigs

The recent ban follows local reports that the Venezuelan government seized more than 2,000 cryptocurrency mining rigs in Maracaibo.

The seizure is part of an anti-corruption investigation that has led to the arrest of several government officials, including the former head of the National Superintendency of Crypto Assets and Related Activities, Joselit Ramírez.

The governor of Carabobo, Rafael Lacava, posted on social media, calling for public cooperation to improve the country’s electrical system. Lacava urged the public to report illegal mining activities.

This is not the first time the Venezuelan government has shut down cryptocurrency mining. In early 2023, after an investigation into the operations of the state-owned oil company and the national cryptocurrency department, cryptocurrency miners were barred from entering the country.

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