Venezuela Bans Crypto Mining Amid Recurring Blackouts

Updated: 20 May 2024

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Venezuela has banned cryptocurrency mining activities amid a national energy crisis that is causing recurring blackouts.

The Venezuelan Ministry for Electric Energy is also planning to disconnect miners from the national power grid to control demand.

#Oficial Prohibida la minería de Criptomonedas en toda Venezuela.

— Asonacrip (Asociación Nacional de Criptomonedas) (@AsonacripVe) May 18, 2024

Shutting down crypto mining farms will reduce demand and ensure the Venezuelan people can access efficient and reliable services, the energy ministry said. The government did not say whether the ban would be temporary or permanent.

Venezuela Seizes 2,000 Mining Rigs

The recent ban comes after local reports that the Venezuelan government had seized over 2,000 crypto mining rigs in Maracay.

The seizure is part of an anti-corruption probe leading to the arrest of several government officials, including the former head of the National Superintendence of Cryptoassets, Joselit Ramírez.

In a social media post, Carabao’s governor, Rafael Lacava, called for public cooperation to improve the country’s electricity system. Lacava urged the public to report unlawful mining activities.

It is not the first time the Venezuelan government has shut down crypto mining. In early 2023, crypto miners were banned from the country after a probe into the operations of the state oil company and the national crypto ministry.