Venezuela bans crypto and Bitcoin mining

Venezuela has long hoped to use the blockchain technology to skirt global sanctioned levelled against its autocratic regime – no more

The Venezuelan government is looking to crack down on crypto and Bitcoin (BTC) mining, as the country's electricity grid has been overloaded.

The Ministry of Electric Power said it would disconnect crypto mining farms from its national grid, tracking down such operations throughout the fairly economically moribund country, which has suffered from frequent brownouts and blackouts even prior to crypto mining becoming an issue.

Venezuela is not entirely over the idea of using cryptocurrencies to procure goods and services from overseas allies as it faces debilitating sanctions over its lack of democratic process.

Those that will most likely suffer are businesses that invested into setting up crypto farms in the first palace.

This new measure follows a recently conducted operation against a cryptocurrency mining farm in Maracay that saw more than 2,000 mining units confiscated.

Venezuela is not the first country to take a tougher stance on crypto mining that is tapping into the national electricity grid and hogging too much power to the point that utility companies are unable to manage their output.

Kazakhstan and China have both shuttered crypto mining, not least because of the surge in electricity demand that was straining supply for ordinary people and households, as well as businesses.

There has been a fair bit of focus on crypto mining even prior to this new plan outlined by the country’s ministry, with some suggesting that the country is usurping private resources to prop up its regime.

Venezuela tried to avoid crypto mining by launching its El Petro token, a blockchain currency that was supposed to dodge US-led sanctions against the country but floundered in the end.

The country also cracked down on crypto-linked oil companies last year, leading an offensive against private initiatives involving cryptocurrencies.

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Written by Barney

Co-founder

Barney is co-founder of CryptoGamblingNews.com. When not at work he can usually be found behind a Nikon. He's won numerous international competitions for his photography and volunteers as a content creator for aid organisations in Africa.

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