- Venezuelan government disconnects crypto miners from the national grid due to significant electricity demand.
- The move follows the seizure of thousands of mining devices, part of a broader crackdown on corruption affecting various state agencies.
- Economic challenges and political instability have led to massive emigration and dependence on activities like Bitcoin mining for survival.
On Friday the Venezuelan Ministry for Electric Energy (MPPPE) announced it would “disconnect” crypto miners from the national electricity grid. As Voice of America reports, the government decided to remove all mining operations from the network due to concerns over “high impact” on electricity demand.
The announcement of the measures followed the confiscation of at least 2,000 cryptocurrency mining devices in Maracay, Aragua state, approximately 120 kilometres southwest of Caracas last Thursday.
Related: Banks Want to Buy BTC from Miners, Indicating Supply Shortage, Says Hut8 Mining CEO
This operation is part of a broader crackdown on corruption launched last year by the Venezuelan government, which has led to the arrest of numerous officials from Petróleos de Venezuela (PDVSA), the National Superintendency of Cryptoactives (Sunacrip), and other government agencies, as reported by local media.
Since political turmoil in the late 1990s and following a decline in oil prices, Venezuela’s economy faced a severe recession, leading to hyperinflation and widespread shortages.
Political and economic crises prompted massive emigration and unrest, with millions of Venezuelan citizens fleeing to neighbouring countries.
The country has struggled with high inflation and electricity shortages for decades, with massive blackouts in 2019.
Locals Urged to Dob in Miners as State Seizes Thousands of Machines
Rafael Lacava, governor of the state of Carabobo, said the measures are necessary due to the miners’ high usage of electricity. He also encouraged the public to come forward to report suspected misuse of electricity.
Other sources claimed that the country has already started a much larger crackdown on miners. One user on social platform X (formerly known as Twitter) reported that the country had “seized over 11,000 bitcoin miners”.
Another user voiced their frustration over the move, saying that it would definitely hurt small miners who had been using Bitcoin mining as a way to support themselves and their families.
Amid the economic instability, mining BTC was a viable option for some – despite frequent power outages – a lifeline now cut, the account MoonshotMemories stated.
Get the most important crypto news delivered to your inbox by subscribing to the CNA newsletter
Credit: Source link
