Venezuelan authorities cut power to Bitcoin miners in key state

Regional authorities in one of the country’s key states, Carabobo, have suspended power to all registered miners, ending their operations in the industrial state. Although there have been no official explanations for this measure, some people with knowledge of the subject state that the action was taken due to the huge energy consumption that these operations have in the area.

Mining operations suspended in Carabobo state

Carabobo regional authorities yesterday suspended the power supply to registered miners in the key industrial state of Venezuela, without an official explanation. People familiar with the matter allege that the mining user base is consuming too much power, threatening the power supply and grid for other subscribers.

According to Criptonoticias, who has reportedly been in contact with people affected by the measures, the national electricity company and Venezuelan cryptocurrency watchdog Sunacrip are planning to meet to assess the situation and try to find a solution. so that the miners continue to operate in the midst of the crisis. the contingency of power that the state is supposed to go through.

Carabobo is home to a significant portion of the cryptocurrency and bitcoin mining companies that operate in the country, and this measure affects the sustainability of those operations.

Registered mining

Cryptocurrency mining has been legal in Venezuela since Sunacrip passed a bill regulating mining activities in the country. But all Venezuelans in the industry must obtain a license issued by Sunacrip. Minors must also detail their activities and keep a record of them for 10 years, in accordance with the law. However, many miners do not trust the government and have decided to mine underground.

This measure could be a pressure signal for all minors, to get them to register with the national watchdog and to start exploitation in a legal manner. Another potential reason for the suspension is that government officials could have predicted an unstable power grid situation occurring at the same time as the election for government party officials was taking place over the weekend. However, sources explain that the measure would have been suspended after the electoral process, if this had been the case.

Industry insiders have decided not to issue compromising comments on the measure until they can meet with authorities responsible for taking the measures this week.

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