Venezuelan authorities, led by the National Power Ministry and Corpoelec, have escalated their regulatory actions against cryptocurrency mining operations in a series of seizures. In two recent operations, law enforcement officials confiscated a staggering tally of over 6,000 bitcoin mining machines. This latest action brings the total number of seized miners in Venezuela to over 17,000 units.
The mining industry in Venezuela has faced increasing regulation, especially after the National Power Ministry unveiled a plan to disconnect all bitcoin mining equipment to mitigate the nation’s energy consumption woes. Cryptocurrency mining, known for its intense energy usage, has become a focal point for the Venezuelan government as it deals with an ongoing energy crisis that has resulted to frequent blackouts across the country. The energy-intensive process has been identified as a significant burden on the already strained power system.
The recent crackdown has been especially severe in the states of Portuguesa and Cojedes. In Portuguesa, a jaw-dropping count of 5,995 miners were seized, with another 293 units confiscated in Cojedes. This follows a prior incident in Carabobo state where more than 11,000 bitcoin miners were disconnected and taken by the authorities.
These developments underline a marked shift in the Venezuelan government’s approach to cryptocurrency and its regulation. The country’s stance has seen a drastic turnaround following the intervention of Sunacrip, the national cryptocurrency watchdog, and the apprehension of its former head, Joselit Ramirez. Ramirez’s arrest under suspicions of facilitating unregistered Venezuelan oil sales for cryptocurrency exchange sparked an extensive investigation into internal embezzlement and money laundering.
Cryptocurrency has had a complex journey in Venezuela, with some crediting it for providing financial solutions to the unbanked and underbanked populations. Sergio Goschenko, a local cryptocurrency journalist, has offered insights on the dual nature of crypto success – from its value to everyday Venezuelans to the darker implications of regulatory breach and economic crisis.
The government claims that the seizures are essential in order to alleviate the power grid and prevent further blackouts, indicating a future where cryptocurrency miners in Venezuela may need to find new ways to operate within the legal framework and still be energy efficient. The ripple effect of these operations is likely to be felt throughout the local crypto community as miners and investors alike reconsider the sustainability and legality of their operations in the wake of increasing government scrutiny.
