The Venezuelan Ministry of Energy has announced that all cryptocurrency mining farms within the country will be disconnected from the national electricity grid, known as Sistema Electrico Nacional (SEN). This initiative aims to manage the substantial energy consumption by these farms and ensure a stable power supply for Venezuelan citizens.
What Prompted This Decision?
The announcement, reported by local media outlet AlbertoHaberleri on May 18, followed the seizure of 2,000 cryptocurrency mining devices, which is part of an ongoing government anti-corruption effort. This crackdown resulted in the arrest of several officials from state institutions, highlighting the government’s commitment to addressing corruption.
How Does Corruption Affect the Crypto Sector?
The National Crypto Assets Inspectorate (Sunacrip) is undergoing a restructuring process after the arrest of Inspector Joselit Ramírez, who had ties to former Oil Minister and ex-president of Petróleos de Venezuela, Tareck El Aissami. El Aissami faces charges including treason, embezzlement, and money laundering.
Since 2009, Venezuela has been grappling with an electricity crisis, culminating in major blackouts in 2019 that left cities powerless for seven days. These frequent outages have severely impacted the nation’s quality of life and economic operations.
Carabobo state Governor Rafael Lacava confirmed the restrictions on crypto mining farms, citing their significant energy consumption. He urged residents to report illegal mining activities to help prevent further power outages.
Community Actions to Combat Energy Issues
Key Takeaways for Residents:
– Report any suspected illegal crypto mining activities to local authorities.
– Understand that crypto mining farms significantly contribute to power outages.
– Compliance with new regulations ensures more stable electricity for all citizens.
In conclusion, Venezuela’s decision to cut off crypto mining farms from the national grid is a measure to manage energy consumption and combat corruption. The government calls for community cooperation to ensure reliable electricity service for everyone.