Venezuela Cracks Down on Crypto Mining to Stabilise Power Grid Amid Corruption Allegations

Venezuela's Ministry of Electric Power has announced plans to disconnect cryptocurrency mining farms from the national grid in order to regulate excessive energy consumption and ensure a stable power supply for the population. This move follows a recent crackdown involving the confiscation of 2,000 cryptocurrency mining devices as part of an anti-corruption initiative. Cryptocurrency mining has been banned in Venezuela, and the government aims to stabilise the national power supply by eliminating the strain caused by these high-energy-consuming farms. The country has experienced recurring blackouts since 2019, impacting daily life and economic activity. This crackdown is part of a larger anti-corruption push, with several top officials arrested, including Joselit Ramírez, the former head of the National Superintendency of Crypto Assets. Rafael Lacava, governor of Carabobo state, has urged public collaboration in detecting illegal mining operations. This isn't the first action against crypto mining in Venezuela; in March 2023, the country's energy supplier shut down mining facilities nationwide as part of corruption investigations involving the state oil company.