Venezuela shuts down Bitcoin mining in one of its states

Venezuela followed the example of China and, last Saturday (7), through the authorities of the state of Carabobo, closed all Bitcoin (BTC) mining operations.

Authorities have suspended all electricity services that supplied Bitcoin mining farms in the region.

According to information from the local press, the repression would have started after the city identified that the high energy consumption of the activity was harming the energy supply to the city.

The authorities’ action contrasts with recent statements by Venezuela that it is seeking to be a cryptocurrency friendly nation.

However, the National Cryptocurrency Superintendence (Sunacrip) and the National Electricity Corporation (Corpoelec) plan to meet this week to reach an agreement on the suspensions.

Bitcoin Mining

In addition to the high energy consumption, Corpoelec claims that most miners are not registered in the nation. Therefore, they would be operating illegally.

However, analysts point out that the holding of elections in the region could be the main factor for the closure of mining. This is because, although the election is for internal positions within the United Socialist Party of Venezuela (PSUV), the governing party, the vote is important for defining the direction of the nation.

However, as Venezuela is in crisis, reducing mining does not guarantee that the nation will not have new energy problems.

So far, there are no official statements about the suspension of mining. Likewise, cryptocurrency miners in the region declined to comment on the restrictions. They said they were awaiting new government decisions.

Meanwhile, the mining machines in the region, around 10,000 ASICS, remained idle awaiting official decisions.

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