The Ministry of Electric Energy of Venezuela announced this May 7 that the absolute ban on mining bitcoin and other cryptocurrencies will be maintained throughout the national territory, as part of the measures adopted to protect and stabilize the National Electric System (SEN) in the face of the historic increase in energy demand.
In a official statement, The authorities warned that any person or group that carries out mining activities illegally will be punished “with the full weight of the law.” Furthermore, they reported that a special supervision plan will be activated together with competent organizations to guarantee compliance with the measure.
The statement came after The Government will report that the country’s electricity consumption reached 15,579 megawatts (MW)the highest figure recorded in the last nine years, in the midst of a context of high social tension, where 35% of Venezuelan households suffer power outages daily.
On the other hand, the government of the Carabobo state, in the central region of Venezuela, also offered rewards this May 7 to eradicate Bitcoin mining in the entity, announcing that USD 1,000 will be awarded to any citizen who provides information on the location of digital mining farms or equipment, as reported by CriptoNoticias.
It is important to highlight that the possession of mining equipment is not prohibited in Venezuela since the entry into force of Decree 4,196, published in the Official Gazette No. 41,969 in September 2020. However, the authorities have indicated that Confiscation cases in recent months are linked to the use of these devices without the required permits. The regulations establish that those who wish to develop cryptocurrency mining activities must register in the Comprehensive Registry of Miners (RIM) and operate under the control of the National Superintendence of Cryptoactives and Related Activities (SUNACRIP).
Bitcoin mining in Venezuela has gone through different stages since its official regulation in 2020. However, the deterioration of the electrical system and the energy crisis have led the authorities to impose greater restrictions, such as the operation to disconnect mining farms nationwide, under the argument that these high-consumption operations affect the stability of the national electrical service.