#Venezuela #CryptoMining #ElectricityCrisis #Bitcoin #Blockchain #EnergyConservation #Cryptocurrency #TechRegulation
In a significant move by Venezuela’s Ministry of Electric Power, a plan has been announced to disconnect all cryptocurrency mining farms that utilize the National Electric System (SEN) for their operations. This decision impacts a considerable portion of miners within the country, particularly those mining Bitcoin, who have been capitalizing on what has been considered “free” electricity. The ministry made this announcement public via their Instagram page, indicating a consolidated effort alongside Venezuela’s National Electric Corporation (Corpoelec) and the Public Ministry (MP) to curb the power supply to these heavily consuming entities.
The government’s rationale behind this drastic step is twofold: firstly, to address the concerns over the stability of the nation’s electrical supply, and secondly, to put an end to the large-scale, cost-free electricity consumption by crypto mining operations. These concerns were spotlighted by Rafael Lacava, the governor of Carabobo state, and Jorge Márquez, the Minister of Electrical Energy, who underscored the necessity of reducing the operational capacity of such data centers. Their urgency is echoed in the government’s stance against clandestine mining activities, which have been linked to recurring power outages and a strain on the local electricity infrastructure. The overarching goal, as stated by the Ministry, is to mitigate the demand impact, ensuring an efficient and reliable power service across Venezuela.
This crackdown on crypto mining due to high energy consumption comes amid a broader regulatory landscape that has recently seen the Venezuelan government suspend crypto mining activities following a major corruption investigation. The probe brought to light the misuse of crypto wallets to redirect funds meant for the state-run oil company, further implicating officials within Venezuela’s cryptocurrency oversight body in corruption. While this development puts a significant dent in the country’s crypto mining sector, it also raises questions about the future of miners who operate off the grid. Despite the crackdown, the government’s proactive steps towards regulating the crypto mining industry underscore the balancing act between fostering technological advancement and ensuring the sustainability of essential utilities.
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