Venezuela has banned mining to protect the electricity grid

The Venezuelan Ministry of Electricity will disconnect "all cryptocurrency mining farms" from the national electricity system in order to control demand. This is reported by local media with reference to the statement of the department.

"The goal is to disconnect all cryptocurrency mining farms in the country from the national electrical system in order to avoid high demand and continue providing efficient and reliable service to all Venezuelans," the ministry said in a statement.

According to media reports, the measures were taken after the seizure of 2,000 mining devices in the city of Maracay in the north of the country as part of an anti-corruption initiative.

The National Cryptocurrency Association of Venezuela confirmed in a post on Thursday a complete ban on mining digital assets throughout the country.

#Oficial Prohibida la minería de Criptomonedas en toda Venezuela.

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

According to the media, Venezuela has been experiencing an electricity crisis since 2009. The situation worsened in 2019 after massive blackouts left several cities without electricity for up to seven days.

Recall that in September 2023, Venezuelan law enforcement officers seized several dozen ASIC miners and a huge armory as a result of the storming of the Tokoron prison in the city of Makaray. More than 11,000 police and soldiers participated in the operation, supported by tanks and armored vehicles.

In April 2024, Reuters journalists reported on the transition of the Venezuelan state oil company PDVSA to settlements in USDT to circumvent sanctions.

After that, the issuer of the Tether stablecoin announced its intention to block the wallets of organizations and individuals that fell under the restrictions of the US Treasury.