Venezuela bans crypto mining to deal with energy crisis

The buzz is that the Venezuelan government is cracking down on power-hungry crypto-mining companies. According to AlbertoNews, the Ministry of Electric Power is ready to pull the plug on these energy-draining operations, which have been sapping the national power grid, SEN.

The government’s ultimate goal is to balance energy usage and ensure a stable electricity supply for its citizens.

In a shocking announcement posted on X in May 18th, the association confirmed a major ban on the country’s crypto mining industry. This decision comes on the heels of a dramatic raid in Maracay, where 2,000 mining devices were seized as part of an anti-corruption crusade.

The Electric Ministry is on a mission to revolutionize Venezuela’s power supply and ensure its stability and efficiency. With the growing demand for energy from mining companies putting a strain on the national grid, the Ministry is taking action to alleviate the stress and prevent any further power fluctuations that have plagued the country for far too long.

Venezuela has been plunged into a state of perpetual darkness since 2009, as a relentless power crisis continues to wreak havoc. The year 2019 saw a new low, with massive blackouts crippling entire towns and cities for over a week. The relentless outages have not only disrupted the daily lives of residents, but also dealt a heavy blow to the country’s economic activities.

Unlocking the digital gold rush comes at a high cost – the heavy electricity demands of cryptocurrency mining. This has prompted countries like China and Kazakhstan to take drastic measures, imposing strict regulations and even outright bans to protect their power grids.

As a result, the once decentralized mining operation has now been centralized in a few select locations. But it’s not just about power – the Venezuelan government’s crackdown on cryptocurrency mining is believed to be part of a larger anti-corruption drive, leading to the arrest of several top officials.

Meet Joselit Ramírez, once a powerful leader of the National Superintendency of Cryptoassets, now embroiled in a web of corruption and scandal. This enigmatic figure holds the key to unraveling a twisted tale of deceit and greed.

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Carabobo State Governor Rafael LaCava has noted the importance of public cooperation in identifying illegal mining operations and encouraged citizens to report any illegal activities:

“If you, a neighbor, see a house that you know, tell that person to turn off the farm, or if not, report it, because when they take away the electricity you have to give light to a man so that he can earn a few reais (money), you are left without electricity.”

According to AlbertoNews, a team of experts has identified the root cause of the crisis plaguing Venezuela’s power grid – inadequate maintenance and lack of investment. However, the government is pointing fingers at sabotage and has vowed to revamp the state-controlled power network.

But this is just the latest move in Venezuela’s ongoing battle against crypto mining. Just last year, authorities launched a daring raid on a gang-controlled prison, confiscating thousands of Bitcoin mining machines and uncovering a stockpile of weapons.

The operation involved over 11,000 soldiers, highlighting the intense efforts being made to combat this underground industry.

In a scandal that has rocked the nation, Venezuelan regulators have shut down all Bitcoin mining operations, citing a corrupt scheme that has drained funds from the country’s largest oil company, Petr￳leos de Venezuela SA (PDVSA).

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