The Venezuelan government has joined the list of countries expressing concern over the energy-intensive nature of cryptocurrency mining.
In a bid to regulate excessive electricity consumption and ensure a stable power supply for its population, the Ministry of Electric Power in Venezuela plans to disconnect cryptocurrency mining farms from the national grid, according to a report from a local news outlet.
The decision comes in the wake of a recent crackdown on crypto mining, which saw the confiscation of 2,000 mining devices in the city of Maracay as part of an anti-corruption initiative.
Per the report, the Ministry of Electric Power has emphasized the need to provide efficient and reliable electrical service across Venezuela by addressing the strain caused by high-energy-consuming mining operations.
Officials argue that these measures are necessary to stabilize the national power supply, which has been plagued by unreliability for the past decade.
In a post on X, Venezuela’s National Association of Cryptocurrencies also confirmed that crypto mining is now prohibited in the country.
#Oficial Prohibida la minería de Criptomonedas en toda Venezuela.
— Asonacrip (Asociación Nacional de Criptomonedas) (@AsonacripVe) May 18, 2024
Venezuela Suffers From Recurring Blackouts
Venezuela has experienced recurring blackouts, particularly since 2019, which have significantly impacted the daily lives of its residents and overall economic activity.
The energy demands of cryptocurrency mining are substantial, prompting several countries, including China and Kazakhstan, to implement strict regulations or outright bans on the practice.
The Venezuelan government’s crackdown on crypto mining is reportedly part of a broader anti-corruption campaign that has led to the arrest of several high-ranking officials. Joselit Ramírez, the former head of the National Superintendency of Cryptoassets, is a key figure implicated in the corruption allegations.
This is not the first time Venezuela has taken action against crypto mining. In March 2023, the country’s energy supplier shut down crypto mining facilities nationwide as part of corruption investigations involving the state oil company.
At the time, Venezuela’s attorney general, Tarek William Saab, revealed that government officials were allegedly involved in parallel oil operations with the assistance of the national crypto department.
“In this case, it was possible to detect a network of officials who, using their position and levels of authority, proceeded to execute oil operations parallel to Petróleos de Venezuela,” he wrote in a post on X.
Tarek William Saab: En este caso, se logró detectar una red de funcionarios que valiéndose de su cargo y sus niveles de autoridad procedieron a ejecutar operaciones petroleras paralelas a Petróleos de Venezuela
— Ministerio Público venezolano (@MinpublicoVEN) March 25, 2023
Biden Bans China-Linked Bitcoin Miner
In another blow to the crypto mining industry, President Biden ordered a halt to the MineOne operation, a China-tied Bitcoin mining project located near Warren Air Force Base.
The order cited national security risks due to the facility’s Chinese ownership and its proximity to critical military infrastructure.
EXPLORE: Best Bitcoin Mining Software Reviewed
In 2022, Microsoft, a United States technology company with a data center in the same area, also raised concern that MineOne could enable intelligence operations near the Air Force base.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
Why you can trust 99Bitcoins
Established in 2013, 99Bitcoin’s team members have been crypto experts since Bitcoin’s Early days.
Weekly Research
100k+Monthly readers
Expert contributors
2000+Crypto Projects Reviewed
Free Bitcoin Crash Course
- Enjoyed by over 100,000 students.
- One email a day, 7 days in a row.
- Short and educational, guaranteed!
Maximize Your Trading With Margex’s 20% Deposit Bonus
‘Buy in May, Get Paid in June?’ – $300K Bitcoin Calls Heat Up, BTC Bull Token Is Locked In
CoinGecko Report Analysis: What Moved Crypto in Q1 2025?
14 Best Crypto Bonuses in 2025 – Top Exchange Offers & Promotions
BingX Launches $10 Risk-Free Copy Trading Voucher for New Users in Exclusive Event
