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Venezuela bans crypto mining for energy conservation


Venezuela bans crypto mining

Due to its high energy consumption, the Venezuelan government has joined the list of nations that disapprove of cryptocurrency mining.

Venezuela's Ministry of Electric Power has started shutting down cryptocurrency mining farms from the national grid, as reported by a local news source. The action aims to limit energy consumption and guarantee a reliable electricity supply to the public. The National Association of Cryptocurrencies of Venezuela said in an X post that cryptocurrency mining is forbidden in the country.

2,000 bitcoin mining devices were seized in Maracay as part of an anti-corruption campaign. The ministry emphasized the need to reduce the burden caused by high-energy farms to ensure reliable electricity service in Venezuela. Officials say these actions are needed to stabilize the country's electricity supply, which has been unstable for the past ten years.

Blackouts have been happening frequently in the nation, especially since 2019. These have had a big influence on people's everyday lives and the nation's economy as a whole. Mining cryptocurrency requires a lot of electricity. As a result, some nations, like China and Kazakhstan, have enacted strict laws or outright prohibited the practice.

The Venezuelan government is cracking down on cryptocurrency mining as part of a broader effort to fight corruption. This has led to the arrest of several top officials. Joselit Ramírez, the former director of the National Superintendency of Cryptoassets, is a key figure in the corruption allegations.

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