Venezuela Disconnects Mining Farms from National Grid to Regulate Energy Consumption and Ensure Stable Power Supply
In a bid to protect the national power grid, the Venezuelan government has announced a ban on crypto mining.
According to local sources, the Ministry of Electric Energy has decided to disconnect cryptocurrency mining farms from the national grid in order to regulate excessive energy consumption and ensure a stable electricity supply for the population. This decision follows a recent crackdown where 2,000 crypto mining devices were confiscated in the city of Maracay as part of an anti-corruption initiative.
Pressure on the Power Grid and Stabilization Measures
The ministry has emphasized the need to provide efficient and reliable electrical service throughout Venezuela by alleviating the pressure caused by these high-energy-consuming mining farms. This measure is seen as crucial to stabilize the national energy supply, which has experienced recurrent power outages, particularly since 2019, disrupting the daily lives of residents and overall economic activity.
Broader Context of the Anti-Corruption Campaign
The action against crypto mining comes within the broader context of the fight against corruption. Several high-ranking officials, including Joselit Ramírez, the former head of the National Superintendency of Cryptoassets, have been arrested, with Ramírez being a key figure in corruption allegations.
Rafael Lacava, the Governor of Carabobo State, has emphasized the importance of public collaboration in detecting illegal mining operations and encouraged citizens to report any illegal activity.
This is not the first time Venezuela has taken action against crypto mining. In March 2023, the country’s energy provider shut down cryptocurrency mining facilities nationwide as part of investigations into corruption involving the state-owned oil company.
In addition, in 2023, eight major cryptocurrency mining operators in Kazakhstan signed an open letter to President Kassym-Jomart Tokayev, expressing concerns over high energy prices for miners and highlighting a global trend of regulating or banning this practice due to its heavy electricity demands.
