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Venezuela Cuts Power to Cryptocurrency Miners

So far, no authority has commented on why the power supply to state miners has been cut. However, knowledgeable people assume that the authorities stopped the power supply because of the extremely high energy consumption. In addition, one must also consider that numerous miners came to Venezuela in recent months to mine Bitcoin & Co. there.

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In the latest Bitcoin news, Venezuelan authorities cut the power supply to state-owned Bitcoin miners. Thus, mining activity has effectively been halted. Already on Saturday, August 7th, the power supply to all Bitcoin and cryptocurrency miners was cut. However, it was not until today that this bitcoin news hit the table.

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Venezuela suspends power supply for miners

As has now been revealed in Bitcoin News, Venezuelan authorities have cut the power supply to major state-owned Bitcoin miners and miners of other cryptocurrencies. This means that there is currently a shutdown of miners. The authorities have, despite legality effectively stopped miners in their territory.

In Venezuela, according to the National Superintendencia de Criptoactivos y Actividades Conexas de Venezuela Decreto, mining is perfectly legal. In this regard, the law allows, among other things, the use, sale, import as well as production, i.e. mining, of digital currencies in Venezuela. Residents who want to mine Bitcoin & Co. only need to apply for a license from the relevant organization.

What do the authorities say about this Bitcoin news?

So far, no authority has commented on why the power supply to state miners has been cut. However, knowledgeable people assume that the authorities stopped the power supply because of the extremely high energy consumption. In addition, one must also consider that numerous miners came to Venezuela in recent months to mine Bitcoin & Co. there.

Since the power supply in Venezuela is not as stable as in Germany, for example, incidents occur time and again. Since the numerous miners flocked to the country, the energy bottlenecks have increased drastically, as heard from the authorities.

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However, another aspect might also be that there are still numerous cryptocurrency miners who do not adhere to the applicable legal regulations. In order to track them down, it could also be that this is why the power was cut. Just two weeks ago, authorities in Carabobo state seized 140 miners’ equipment for allegedly operating illegally. This Bitcoin news also made high waves.

However, the miners who were affected did not want to comment on it, as the order came from the highest levels of the government in Venezuela. They feared retaliation and therefore did not reveal their identity.

What role does the government play in this Bitcoin news?

Currently, it is heard that the National Regulatory Authority for Cryptocurrencies (Sunacrip) as well as the National Electricity Corporation (Corpoelec) are planning to meet next week to discuss. In the process, many assume that there could possibly be a mining ban in the state of Carabobo.

On the one hand it is in such a way possible to reduce the energy consumption again and on the other hand also, in order to avoid the energy bottlenecks. Because since the numerous miners in the state began their work, there are increasingly frequent power outages and bottlenecks. However, the authorities have not yet issued an official statement on this Bitcoin news.

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(Featured image by 12019 via Pixabay)

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Isaac Atwood is a PR and marketing consultant who has worked with respected names in the financial industry. He has also sat down in many sessions with startups aiming to become the next unicorn. Isaac loves working with CEOs, business executives, and entrepreneurs who wish to enter the following markets: artificial intelligence, cannabis, virtual reality, cryptocurrencies, robotics, wearable and smart tech, and even the much-hyped space race. He is currently managing the brand portfolio of an Asian firm planning for its IPO by the end of the year. While his engagements have taken him around the world, Isaac is proud to call Toronto his home.