Venezuela Cuts Off Power To BTC Mining Plants Despite Legalization

Venezuela Cuts off power to BTC mining plants, shutting down all registered operations in the country despite the legalization so let’s find out more in today’s bitcoin mining news.

BTC miners in Venezuela had their electricity cut off by the authorities. The regional officials shut down the crypto mining operations in the key state by suspending the power supply to the miners in the country. As per the national rule of law, crypto mining is legal in Venezuela as the government allowed the use, sale, import, and manufacture of mining equipment in the country.

The National Cryptocurrency superintendency passed a bill legalizing crypto miners in the country but as the Venezuelan watchdog regulated the activities via issuing mining licenses, there was some speculation that the shut down was only a measure against unregistered operations. In the recent crackdown on the underground operations, the authorities seized 140 pieces of mining equipment in Carabobo. The official statement hasn’t been provided yet but according to the sources, officials could have pulled the plug on the mining operations as Venezuela cuts off power to the mining plants because of the burdening energy consumption in the industrial state.

According to the reports, amidst the power contingency, the National Electricity Corporation and SUNACRIP plan to meet and assess the situation and find a new solution for the miners. Besides putting more pressure on the underground operations, the reports surfaced another reason which could have been the main one pointing to the internal elections by the ruling party which took place the following day. The idea that the political event could have impacted the decision to stop the miners and minimize energy use and prevent unstable power grid disruption remains speculation while the industry insiders decided not to comment on the measure until they meet.

As recently reported, Back in September, the country mandated that all BTC miners in Venezuela will have to join the national pool and all earnings will be regulated by the state and their earnings will be split. Now, the country wants to change its electricity rates. The National Superintendency of Crypto Asset and Related Activities which is the regulatory body for crypto, along with the Ministry of People’s Power for Electricity Energy that implements public electricity policies, signed a legal agreement to promote and to organize crypto mining activity in the country.

Source: https://www.dcforecasts.com/bitcoin-news/venezuela-cuts-off-power-to-btc-mining-plants-despite-legalization/