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Venezuela legalizes Bitcoin mining, creates mandatory national pool for miners

source-logo  coinfomania.com 23 September 2020 11:23, UTC

Bitcoin mining operation is now legal in Venezuela following a decree signed by Joselit Ramirez, the superintendent of National Superintendency of Crypto Assets and Related Activities (SUNACRIP).

The decree states that any resident in the country who is interested in legally mining Bitcoin and other cryptocurrencies must first apply for a license from the entity.

The new law covers all aspects of cryptocurrency mining, including the use, commercialization, importation, and creation of mining equipment in all of the Venezuelan territory. 

Before interested residents can access the licenses that would be processed by the Registry of Miners (RIM), they would first provide some useful information that would indicate if they want to market, import, or buy mining equipment for their personal use.

However, those who plan to delve into manufacturing ASIC equipment or constructing mining farms in Venezuela would have to collect special licenses at a price stipulated by the RIM.

Another part of the decree noted that every individual who takes part in mining must keep all documentation of mining activities and records safe as it would be valid for ten years.

Venezuela’s national bitcoin mining pool

To bring together all miners in the country together for legal mining operations, the authorities in Venezuela created a National Digital Mining Pool. The miners’ community includes even those who own and operate ASIC equipment for mining Bitcoin and other cryptocurrencies.

The national pool is mandatory for all miners, and those who refuse to join the pool would be punished according to the derivatives of the law.

The size of the mining pool created in Venezuela is not indicated but is likely going to be significant considering the fact that Venezuela is the first country in Latin America to start Bitcoin mining and one of the ten countries with the most extensive Bitcoin mining.

As a centralized system, where the distribution of workload and rewards among miners fall in the hands of a group of individuals, the mining pool might experience problems peculiar to a centralized system. Individuals in charge might choose to collect miners’ taxes, freeze their funds, or even delay payments for work done.

However, according to new decrees for supervision and control of mining in Venezuela, which continue to undergo refinements, individuals who go against state licenses will have their mining equipment confiscated.

See Also: Kazakhstan Plans to Generate $738M from Crypto Mining in 3 Years



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