Venezuelan government announces measures to end crypto mining operations in the country – DiarioBitcoin

He MPPEE, in alliance with Corpoelec, will carry out large-scale operations throughout the national territory to “disconnect all cryptocurrency farms in the country from the national electrical system”in order to avoid the high demand for electrical energy.

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• He MPPEE reported that they will disconnect all crypto mining farms from the national electrical system
• To do this, they will carry out operations where they will inspect the facilities that are dedicated to this activity.
• Rafael Lacava, governor of Aragua, asked the community to notify mining farms that operate in the communities
• The authorities associate the problems of the electrical system with the high demand of mining farms
• However, the country was already facing electricity supply problems due to serious cases of corruption.

The Venezuelan government reported that it will implement measures to close crypto mining operations in the country, due to the high electrical demand that this represents for the energy infrastructure of the South American country.

War against crypto mining facilities in Venezuela

This was indicated by the Ministry of Popular Power for Electric Energy (MPPEE)which published a message through its official account instagram where they reported on the new measure, which will be executed jointly with the National Electric Corporation (Corpoelec)to supervise establishments that carry out crypto-mining activities and significantly increase electricity consumption.

In the message attached to the publication, the MPPEE clarifies that “The purpose is to disconnect all cryptocurrency mining farms in the country from the national electrical system, avoiding the high impact of demand.” They add that this measure would allow them to continue offering “an efficient and reliable service to all the Venezuelan people.”

The new measure announced by the MPPEE It is part of a series of actions carried out by the Venezuelan government in recent days against crypto-mining operations, blaming them largely for the malfunctioning of the electrical system. In this regard, the statements made by the governor of the state of Aragua, Rafael Lacava, stand out, who in a message published through his account instagram He assured that part of the local problems are due precisely to these facilities.

“I told the minister that we are also drastically restricting irresponsible consumption… the consumption of cryptocurrencies, of the mines of cryptocurrency farms, which suck up some of the megawatts that they generate, of course, after the issue of rationing. ”indicated Lacava and shared the following warning:

Therefore, if your neighbor sees a house next to your house that you know, tell that person to turn off the farm, or if not, report it, because when they turn off the light, you have to give light to the man so that he can If you earn a few reais, you are left without food and without the possibility of having electrical service.

In the context of the scandal against Tareck El Aissami

The new measures against crypto mining farms come weeks after the announcement of the arrest of former Venezuelan oil minister Tareck El Aissami for a corruption case in the state oil company, PDVSA, which would have involved a complex plot associated with cryptocurrencies in different areas.

According to the Attorney General of the Republic, Tarek William Saab, El Aissami, together with the former Minister of Economy and Finance, Simón Alejandro Zerpa, the businessman, Samark López, and other trusted figures, carried out the sale of large shipments of oil with collaboration of the National Superintendency of Crypto Assets (Sunacrip) and its president, Joselit Ramírez.

The payments in question for the sale of oil would have been legitimized with cryptocurrencies through external exchanges, and said profits would have been used to establish crypto mining farms, all with the knowledge and authorization of El Aissami himself.

Months before this arrest, Ramírez was imprisoned, and with it the intervention of Sunacrip for subsequent restructuring. The measure in itself made its weight felt on the exchanges that operate in the country, since they had to suspend operations until the operations of the government entity were regularized.

Within the framework of the latter, the farms and mining facilities registered with the entity also had to suspend activities, although the order would come directly from Corpoelec, company responsible for the infrastructure and electrical consumption in the country, this in collaboration with the department of Commercial Management, Attention to Large Users and Digital Mining. The specific reason behind the resolution of said measure is unknown.

The problems of the national electrical system

As for the national electrical system, although crypto-mining plants entail significant consumption, the truth is that supply and supply problems have been going on for a long time in the country, so these facilities did not cause the inconveniences seen today.

According to several analysts, the country’s electricity supply problems are associated with the low investment that the government has made for the expansion and maintenance of the national electrical system, this goes hand in hand with the already numerous cases of corruption perpetrated by high-ranking officials. positions of power.

Regarding the electrical system, 2019 saw one of the toughest episodes for the country, as there was a national blackout that lasted almost a full week. The event occurred due to a large-scale failure in one of the turbines of the El Guri dam, and although the government associated the event with an attack perpetrated by opponents, various reports warned that something like this would occur due to low investment. to guarantee the operation of the national electrical system.

Since then, interruptions of electrical service in different areas of the country are common, especially outside the capital where there are episodes that last for hours and days on certain occasions.

Back with the recent announcement made by the MPPEE, For now, the doubt remains about what will happen to the crypto mining facilities that were already operating in the country with permission from the state.

Article by Angel Di Matteo / DailyBitcoin

Picture of Unsplash

WARNING: This is an informative article. DiarioBitcoin is a media outlet, it does not promote, endorse or recommend any particular investment. It is worth noting that investments in cryptoassets are not regulated in some countries. They may not be suitable for retail investors as the entire amount invested could be lost. Check the laws of your country before investing.