The Venezuelan government is cracking down on cryptocurrency mining due to concerns over excessive electricity consumption. The Ministry of Electric Power plans to disconnect mining farms from the national grid to stabilize the power supply for the population. This decision follows the confiscation of 2,000 mining devices in Maracay as part of an anti-corruption initiative.
Venezuela has been plagued by recurring blackouts since 2019, impacting daily life and economic activity. The energy demands of crypto mining have led to strict regulations or bans in countries like China and Kazakhstan. The crackdown on mining in Venezuela is part of an anti-corruption campaign that has resulted in the arrest of high-ranking officials, including Joselit Ramírez.
In a separate development, President Biden ordered the halt of a China-linked Bitcoin mining project near Warren Air Force Base, citing national security risks. Microsoft also raised concerns about the project enabling intelligence operations near the military base.
Crypto remains a high-risk asset class, and this article serves as informational purposes only and does not constitute investment advice. Investors should be aware of the potential risks involved.