Venezuela’s Ministry of Electric Power has announced plans to disconnect cryptocurrency mining farms from the national grid. This decision is aimed at regulating excessive energy consumption and ensuring a stable power supply for the general population.
According to a post by Venezuela’s National Association of Cryptocurrencies on X, cryptocurrency mining is now prohibited in Venezuela. This move comes after a recent crackdown where 2,000 cryptocurrency mining devices were confiscated in Maracay as part of an anti-corruption drive.
The ministry stressed the importance of providing efficient and reliable electrical service throughout Venezuela by eliminating the burden caused by these high-energy-consuming farms. Officials stated that these measures are crucial to stabilizing the national power supply, which has been unstable for the past decade.
The country has been experiencing frequent blackouts, particularly since 2019, severely affecting residents’ daily lives and overall economic activities.
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Other Countries’ Approaches
Some countries, such as China and Kazakhstan, have responded to the high electricity demands of cryptocurrency mining by implementing strict regulations or outright bans on the practice.
On the other, Oklahoma just recently legalized crypto mining in homes as long as it complies with the noise policy. This includes operating nodes for operations like staking.