Government of Venezuela to Disconnect Cryptocurrency Mining Farms

Venezuela Government Takes Action Against Cryptocurrency Mining

Impact of Disconnecting Mining Farms

Venezuela's Ministry of Electric Power announced plans to disconnect all cryptocurrency mining farms from the national power grid to address high energy consumption and ensure reliable service for citizens. The move aims to control demand and enhance efficiency.

Anti-Corruption Measures

• Seizure of Mining Machines: Following the confiscation of 2,000 cryptocurrency mining machines, the government escalated its anti-corruption efforts.
• Restructuring of Sunacrip: The National Superintendency of Cryptoassets is under a restructuring board after the arrest of Superintendent Joselit Ramírez.
• Charges Against Officials: High-ranking officials face charges related to corruption, money laundering, and misuse of influence.

Power Grid Crisis and Consequences

1. Electricity Shortages: Venezuela has faced an electricity crisis since 2009, impacting quality of life and economic activities.
2. Restrictions on Mining: Governor Rafael Lacava imposed restrictions on cryptocurrency mining due to electricity consumption concerns.
3. Modernization Efforts: The government plans to modernize the power grid to address ongoing challenges.

Experts attribute the power grid crisis to poor maintenance, while the government cites sabotage. Worldwide, countries are imposing restrictions on mining to protect power grids, leading to security concerns.