Mining

Venezuela cut off power to Bitcoin (BTC) mining plants despite legalization

Bitcoin (BTC) miners in one of Venezuela’s most important industrial states, Carabobo, had their electricity cut off by authorities.

On August 7, the regional officials effectively shut down crypto mining operations in the key by suspending the power supply to all registered miners in the territory.

Putting pressure on underground mining

According to the national rule of law, crypto mining is legal in Venezuela as “National Superintendencia de Criptoactivos y Actividades Conexas de Venezuela decreto” allowed use, sale, import, and manufacture of mining equipment in the country. 

The National Cryptocurrency Superintendency (SUNACRIP) passed a bill that legalized crypto mining in the country, but as the Venezuelan cryptocurrency watchdog regulated these activities through issuing mining licenses, there is some speculation the shutdown was a measure against unregistered operations, read the report.

In the most recent crackdown on underground operations, the authorities seized 140 pieces of mining equipment in Carabobo.

Political agenda speculations

Thus far, no official statement has been provided, but according to the sources with knowledge of the situation, officials could have pulled the plug on Carabobo mining operations due to the burdening energy consumption in the industrial state, read the report.

According to Criptonoticias, amidst the power contingency the is going through, the National Electricity Corporation (CORPOELEC) and SUNACRIP are planning to meet and assess the situation in order to find a solution for the affected miners.

Besides putting pressure on underground operations, the report surfaced another potential reason, which could have brought on the shutdown, pointing to the internal elections by Venezuela’s ruling party, the United Socialist Party (PSUV), which took place on the following day.  

The idea that the political event may have impacted the decision to stop crypto mining in the key in order to minimize energy use and prevent the unstable power grid’s disruption remains speculation, while the insiders decided not to comment on the measure until they meet with the officials behind the suspension.

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