Authorities of Venezuela, especially the state of Carabobo, has been making life miserable for mining facilities, as power has been cut out for them.
On Saturday, the 7th of August, Venezuelan Authorities operating in the area apparently cut out the electricity supply for all Bitcoin and other cryptocurrency mining facilities in the vicinity. This is certainly something weird, as Bitcoin and other crypto mining operations are completely free to operate in the country. In accordance with the National Law of Venezuela, the selling, importing, and construction of mining machines and facilities in the country is completely legal and free of any restrictions. However, any company or individuals who want to perform mining operations must apply to register themselves for a legal license to operate such technologies.
As of now, proper reasoning for this sudden power cut to mining facilities has not been revealed, but many analysts believe that the motive behind this decision from the authorities is to make sure that the energy consumption doesn’t get out of hand. As we all know by now, China implemented a complete ban on all cryptocurrency mining operations countrywide because of facing citywide blackouts as a result of the high energy consumption from crypto mining facilities and operations.
Another reason for this power cut might be the implementation of strategic measures to counter many unregistered miners who are not keen on following legal rules and regulations implemented by the government. Several reports posted back in July revealed that more than a hundred pieces of crypto mining equipment had been seized in Venezuela because of illegal unregistered operations in the state of Carabobo. The miners that were convicted are not ready to reveal themselves to the public in order to stay away from any violent behaviour.
In regards to the information provided by multiple sources, Venezuela’s National Cryptocurrency Superintendency and the National Electric Corporation have scheduled a meeting to discuss the situation. Officials from both sides are to discuss the situation of crypto mining having abnormal energy consumption rates and how that energy use can be reduced in order to stabilize the national power grid.
As of now, there have been no official statements being put out to justify the cutting of the power for crypto miners, but some decision is definitely expected to be implemented this week.