Venezuela Shuts Down Crypto Mining Services to Stabilize National Power Grid

Venezuela Shuts Down Crypto Mining Services to Stabilize National Power Grid

The regulatory agencies in Venezuela have joined the international coalition of countries against crypto mining operations. The nations in the coalition have registered their reservations about the waste of electric power via locally-based crypto mining operations.

After joining the group, the nation proceeded to impose a ban against 2000 crypto mining devices operational within its jurisdiction. The regulators in Venezuela in the nation have dubbed the step as an anti-corruption move.

Local media outlets reported that the Ministry of Electric Power recently shared plans to disengage crypto mining farms out of the national grid system.

Venezuela Bans Crypto Mining Services to Conserve Energy

The decision to dislodge mining operators out of the national electric supply was done as a way to conserve energy consumption and reduce total power usage. This move will also warrant regulations against unnecessary energy utility and stabilize power supply for retail consumers within the region.

A post mentioned on X by the National Association of Venezuela has made it clear that crypto mining operations in the region have now become an illegal activity.

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Crackdown Against Crypto Mining Firms in Venezuela

Venezuela’s post mentioned on X revealed that the new prohibition laws introduced against crypto mining firms in the region have barred these services in the city of Maracay. The Asociacion Nacional de Criptomoneds claimed that these steps will ensure a reliable and efficient electric supply throughout Venezuela.

As per the ministry, these changes will remove the additional strain imposed on citizens emanated from excessive usage of electricity via crypto mining firms.

The officials further revealed that the measures are necessary to balance out the overall power supply within the nation. The power supply for retail consumers in the nation has remained unstable for the most part during the past decade.

The government officials further stated that the nations have continued to suffer from prolonged power outages persistently since 2019.

These issues have continued to hinder the daily activities and productivity of Venezuelan citizens and made a negative impact on the economic output. Crypto mining firms have a heavy energy requirement.

However, in some nations like China and Kazakhstan, the citizens have found security from frequent power outages on account of the government taking preventive measures to regulate electricity consumption.

Venezuela’s Anti-Corruption Movement

The government of Venezuela has reportedly taken action to curb crypto mining activities within its jurisdiction. The new regulatory measures are part of the broader anti-corruption movement.

These measures have also led to the arrest of multiple high-ranking officials. Former head of National Superintendent of Crypto Assets, Joselit Ramirez has played an important role in bringing corruption allegations to light.

Governor of Carabobo, Rafael Lacava talked to the media about the necessity of public cooperation for tracing unlawful miners and encourage citizens to report any illegal activities. However, it is not the first time that the Venezuelan government has shut down supplies to mining firms across its national jurisdiction.

One such regulatory crackdown took place during an investigation into the state oil company of the nation. Attorney General, Tarek William Saab exclaimed that several government officials were charged with cooperating with mining services providers alongside oil refineries.

On the other hand, 8 major mining firms operating in Kazakhstan have penned down an official open-letter addresses to President Kassym-Jormart Tokayev. The letter has issued regarding price inflation directed at crypt mining firms.

Another Cointelegraph article reported that the Tether project is working in tandem with law enforcement agencies in Venezuela to block OFAC-sanctioned individuals and firms from settling transactions in USDT. As per the report the nationalized oil company of Venezuela is using USDT to fulfill their contract obligations to exporters.

Furthermore, the spokesperson from Tether told reporters that the stablecoin issuer is cooperating with the law enforcement agencies in the nation as a way to put a halt on oil exporting deals that are attempting to bypass OFAC sanctions.

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