{"id":20817,"date":"2024-05-19T15:00:48","date_gmt":"2024-05-19T12:00:48","guid":{"rendered":"https:\/\/coinengineer.io\/?p=20817"},"modified":"2024-05-19T18:02:52","modified_gmt":"2024-05-19T15:02:52","slug":"venezuela-cracks-down-on-cryptocurrency-mining-amid-energy-crisis","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/venezuela-cracks-down-on-cryptocurrency-mining-amid-energy-crisis\/","title":{"rendered":"Venezuela Cracks Down on Cryptocurrency Mining Amid Energy Crisis"},"content":{"rendered":"<p><span class=\"cursor-pointer whitespace-pre-line text-base font-normal text-[#101828] transition-opacity duration-150 hover:bg-gray-200\" aria-expanded=\"false\" aria-controls=\"radix-:r2v:\" data-state=\"closed\"><strong>The Venezuelan government<\/strong> has announced a nationwide ban on cryptocurrency mining, arguing that this activity results in significant consumption of electricity and hence undermines the stability of the state&#8217;s power system which should provide energy to the population. <\/span><span class=\"cursor-pointer whitespace-pre-line text-base font-normal text-[#101828] transition-opacity duration-150 hover:bg-gray-200\" aria-expanded=\"false\" aria-controls=\"radix-:r30:\" data-state=\"closed\">In the wake of this operation, the police officials have seized 2,000 mining devices worth of cryptocurrency in the town of Maracay, Aragua state. <\/span><span class=\"cursor-pointer whitespace-pre-line text-base font-normal text-[#101828] transition-opacity duration-150 hover:bg-gray-200\" aria-expanded=\"false\" aria-controls=\"radix-:r31:\" data-state=\"closed\">The Minister of Energy (MPPPE) has come up with plans to correlate the energy consumption of mining farms and the national grid so as to curb extensive energy consumption.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_71 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/coinengineer.net\/blog\/venezuela-cracks-down-on-cryptocurrency-mining-amid-energy-crisis\/#Addressing_Energy_Stability\" title=\"Addressing Energy Stability\">Addressing Energy Stability<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/coinengineer.net\/blog\/venezuela-cracks-down-on-cryptocurrency-mining-amid-energy-crisis\/#Anti-Corruption_Force_and_Authority_of_the_Public\" title=\"Anti-Corruption Force and Authority of the Public\">Anti-Corruption Force and Authority of the Public<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/coinengineer.net\/blog\/venezuela-cracks-down-on-cryptocurrency-mining-amid-energy-crisis\/#A_Global_Trend\" title=\"A Global Trend\">A Global Trend<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Addressing_Energy_Stability\"><\/span><span class=\"cursor-pointer whitespace-pre-line text-base font-normal text-[#101828] transition-opacity duration-150 hover:bg-gray-200\" aria-expanded=\"false\" aria-controls=\"radix-:r32:\" data-state=\"closed\">Addressing Energy Stability<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span class=\"cursor-pointer whitespace-pre-line text-base font-normal text-[#101828] transition-opacity duration-150 hover:bg-gray-200\" aria-expanded=\"false\" aria-controls=\"radix-:r33:\" data-state=\"closed\">The way to do that is what gives the decision about the ban on <strong>crypto mining in Venezuela<\/strong> on the basis of giving it cheap and uninterrupted electricity. <\/span><span class=\"cursor-pointer whitespace-pre-line text-base font-normal text-[#101828] transition-opacity duration-150 hover:bg-gray-200\" aria-expanded=\"false\" aria-controls=\"radix-:r34:\" data-state=\"closed\">For about a decade now, one of the major problems antagonizing the life of the residents as well as the economy has been the persistent power outages especially from 2019 <\/span><span class=\"cursor-pointer whitespace-pre-line text-base font-normal text-[#101828] transition-opacity duration-150 hover:bg-gray-200\" aria-expanded=\"false\" aria-controls=\"radix-:r35:\" data-state=\"closed\"><strong>&#8220;Some measures in this context are essential to stabilize the country&#8217;s national power supply,&#8221;<\/strong> representatives from the Ministry of Energy insisted. <\/span><span class=\"cursor-pointer whitespace-pre-line text-base font-normal text-[#101828] transition-opacity duration-150 hover:bg-gray-200\" aria-expanded=\"false\" aria-controls=\"radix-:r36:\" data-state=\"closed\">However, the National Association of Cryptocurrencies made a statement providing a different perspective on this issue in saying that prohibition of the crypto-mining industry prioritizes energy stability over burgeoning industry.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Anti-Corruption_Force_and_Authority_of_the_Public\"><\/span><span class=\"cursor-pointer whitespace-pre-line text-base font-normal text-[#101828] transition-opacity duration-150 hover:bg-gray-200\" aria-expanded=\"false\" aria-controls=\"radix-:r37:\" data-state=\"closed\">Anti-Corruption Force and Authority of the Public<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span class=\"cursor-pointer whitespace-pre-line text-base font-normal text-[#101828] transition-opacity duration-150 hover:bg-gray-200\" aria-expanded=\"false\" aria-controls=\"radix-:r38:\" data-state=\"closed\">It should be noted, however, that this clampdown on crypto mining is one of the components of a larger anti-corruption campaign which has ended up in the arrest of certain top officials including new ex-head of Sunacrip Joselit Ram\u00edrez. <\/span><span class=\"cursor-pointer whitespace-pre-line text-base font-normal text-[#101828] transition-opacity duration-150 hover:bg-gray-200\" aria-expanded=\"false\" aria-controls=\"radix-:r39:\" data-state=\"closed\">Rafael Lacava, State Governor of Carabobo, appeals to all individuals to act as informants and report any illegal operations they may find. <\/span><span class=\"cursor-pointer whitespace-pre-line text-base font-normal text-[#101828] transition-opacity duration-150 hover:bg-gray-200\" aria-expanded=\"false\" aria-controls=\"radix-:r3a:\" data-state=\"closed\">He prompted the citizens to report suspicions of any illegal activities, as he underlined the community&#8217;s fundamental nature of upholding the reliability of the electric power.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"A_Global_Trend\"><\/span><span class=\"cursor-pointer whitespace-pre-line text-base font-normal text-[#101828] transition-opacity duration-150 hover:bg-gray-200\" aria-expanded=\"false\" aria-controls=\"radix-:r3b:\" data-state=\"closed\">A Global Trend<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span class=\"cursor-pointer whitespace-pre-line text-base font-normal text-[#101828] transition-opacity duration-150 hover:bg-gray-200\" aria-expanded=\"false\" aria-controls=\"radix-:r3c:\" data-state=\"closed\">In the light of Venezuela, other developing nations are not left behind in implementing the tough regulations against cryptocurrency mining. <\/span><span class=\"cursor-pointer whitespace-pre-line text-base font-normal text-[#101828] transition-opacity duration-150 hover:bg-gray-200\" aria-expanded=\"false\" aria-controls=\"radix-:r3d:\" data-state=\"closed\"><a href=\"https:\/\/coinengineer.net\/blog\/chinas-cbdc-struggles-with-adoption-amid-privacy-concerns\/\">China<\/a> together with <strong>Kazakhstan <\/strong>or some other countries are trying to use regulations and even prohibitions to ensure protection of power capacities and provision of energy services only for the public needs. <\/span><span class=\"cursor-pointer whitespace-pre-line text-base font-normal text-[#101828] transition-opacity duration-150 hover:bg-gray-200\" aria-expanded=\"false\" aria-controls=\"radix-:r3e:\" data-state=\"closed\">On the 7th of March 2023, the country&#8217;s energy supplier, had instructed to the off crypto mining facilities throughout the entire national territory to rearrange the national crypto department facing corruption investigations by the country&#8217;s oil company. <\/span><span class=\"cursor-pointer whitespace-pre-line text-base font-normal text-[#101828] transition-opacity duration-150 hover:bg-gray-200\" aria-expanded=\"false\" aria-controls=\"radix-:r3f:\" data-state=\"closed\">Attorney General Tarek William Saab claimed an alleged parallel operation of oil market between state officials and the national crypto department being previously reported.<\/span><\/p>\n<p><span class=\"cursor-pointer whitespace-pre-line text-base font-normal text-[#101828] transition-opacity duration-150 hover:bg-gray-200\" aria-expanded=\"false\" aria-controls=\"radix-:r3g:\" data-state=\"closed\">The higher levels of the world-wide cryptocurrency mining supervision reveal that the latest step of Venezuela is an illustration of the complicated relationship between technical advance, energy use, and governance.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Venezuelan government has announced a nationwide ban on cryptocurrency mining, arguing that this activity results in significant consumption of electricity and hence undermines the stability of the state&#8217;s power system which should provide energy to the population. In the wake of this operation, the police officials have seized 2,000 mining devices worth of cryptocurrency<\/p>\n","protected":false},"author":6,"featured_media":20821,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,10,1],"tags":[3938,5550,5608],"class_list":["post-20817","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","category-economy-news","category-genel","tag-crypto-mining","tag-energy-consumption","tag-venezuela"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Venezuela Cracks Down on Cryptocurrency Mining Amid Energy Crisis - Coin Engineer<\/title>\n<meta name=\"description\" content=\"The Venezuelan government banned cryptocurrency mining due to the energy crisis, seizing 2,000 devices. 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