Venezuela has banned crypto mining and seized thousands of machines, citing the industry’s excessive energy consumption and environmental impact. Crypto mining involves solving complex mathematical equations on high-energy computers that must remain continuously operational.
According to a report by AlbertoNews, the South American nation took action as mining operations significantly strained its electrical grid.
In collaboration with the national electrical system, the Venezuelan government plans to disconnect identified crypto-mining farms from the power grid in the coming days. The Ministry of Electrical Energy (MPPPE) has initiated a plan to regulate power supply and target mining clusters.
Last week, Venezuelan authorities confiscated 2,000 crypto mining rigs in Maracay, Aragua state, as part of their enforcement efforts. The Ministry of Electricity shared an Instagram video showcasing the seized equipment and highlighting the ban due to the sector’s substantial energy demands.
Just Energy recently reported that the global energy consumption of all cryptocurrencies ranges between 120 and 240 billion kilowatt-hours annually, surpassing the total energy usage of the world’s data centres.
Venezuela has experienced significant power shortages for years, adversely affecting its nearly 29.12 million residents. Parts of the country have faced severe blackouts since 2009, with conditions worsening in 2019. AlbertoNews attributes these power issues to poor maintenance and lack of upgrades within Venezuela’s electrical system. The nation witnessed 219 protests over frequent power outages from January to March.
In response to the ban, Rafael Lacava, governor of Carabobo, has urged the public to report any ongoing crypto mining activities in their areas.
