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Regional authorities in one of Venezuela’s most important industrial states, Carabobo have suspended the power supply to all registered miners, effectively shutting down their operations.
The Carabobo of Venezuela Bitcoin Miners Face Blackout
On August 7, Venezuelan authorities shut down crypto mining operations in the key industrial state of Carabobo by cutting off the power supply to all registered miners in the territory, Criptonoticias reports.
While there have been no official explanations on the matter, people familiar with the situation allege that the action was taken due to the enormous energy consumption in the industrial state, threatening the power supply for others.
Another factor for this includes measures against unregistered operations and that there are crypto miners who still do not comply with all current legal rules.
Besides countering against illegal crypto mining, the report highlighted another potential reason for the shutdown, pointing to the internal elections by Venezuela’s ruling party, the United Socialist Party (PSUV), which took place on the following day.
However, a political event impacting the decision to stop crypto mining in the key state to minimize energy use and prevent the unstable power grid’s disruption remains only speculation and not a fact.
Mining Bitcoin in Venezuela is Completely Legal
According to Venezuela’s national law, cryptocurrency mining is completely legal as National Superintendencia de Criptoactivos y Actividades Conexas de Venezuela decreto allows the use, sale, import, and manufacture of mining equipment in the country. Residents looking to mine Bitcoin and other cryptocurrencies, however, must apply to the organization for a license.
Amidst the power contingency in Venezuela’s Carabobo, the National Electricity Corporation (CORPOELEC) and The National Cryptocurrency Superintendency (SUNACRIP) are planning to meet next week and assess the situation in order to find a solution for the affected miners, per the report.
Venezuela’s Carabobo hosts an important part of crypto mining operations in the country and the sudden shutdown of the farms could affect the sustainability of these operations in the future.