Proposed Ban on Cryptocurrency Mining for Brazil’s Military and Police Forces

Proposed Ban on Cryptocurrency Mining for Brazil's Military and Police Forces


The Brazilian State of Santa Catarina Bans Crypto Mining for Public Officials

The state of Santa Catarina in Brazil has implemented new rules that prohibit public officials, including police and military officers, from engaging in crypto mining while at work. According to the updated regulations, which were compiled by the state’s police force, employees are required to “refrain” from mining cryptocurrency within their working environments.

As a result of this ban, it will now be considered an offense for public officials to use government WiFi networks and intranet connections in Santa Catarina for crypto mining purposes. The state has also stated that these networks will be closely monitored to ensure compliance with the new rule.

Brazilian Police Take Action Against Illegal Crypto Mining in Public Sector

Prior to this development, Brazilian police had limited authority when it came to preventing public sector employees from using company equipment for crypto mining. In 2021, an employee of the Marรญlia Municipal Water and Sewage Department was discovered running multiple mining programs on his work computer, resulting in significant CPU power consumption. Although the department took legal action against the employee, they were only able to suspend him rather than terminate his employment.

However, with the implementation of these new rules in Santa Catarina, law enforcement officers now have the ability to prosecute cases involving illegal crypto mining in the workplace. This comes as there has been a noticeable increase in instances worldwide where both public and private sector individuals misuse company resources for crypto mining.

For example, South Korean police arrested a high-ranking executive from a major company who allegedly mined approximately $30,000 worth of Ethereum (ETH) by connecting mining rigs to a company facility. The executive had reportedly been conducting mining activities at the facility since 2019 and consumed $3,500 worth of electricity to power the machines, turning the facility into a sweltering environment.

In another case, a civil servant at Seoul’s largest opera house was caught mining ETH using the institution’s power. The individual had set up two sophisticated mining rigs in a seldom-used basement room beneath the Calligraphic Art Museum, utilizing the center’s power outlets.

Hot Take: Santa Catarina Sets Precedent for Curbing Crypto Mining Abuse in Public Sector

The decision by the Brazilian state of Santa Catarina to prohibit public officials from engaging in crypto mining during work hours and using government resources for such activities sets an important precedent in curbing misuse of power and resources. With the ability to monitor networks and enforce compliance, law enforcement officers can now take action against illegal crypto mining within the public sector.

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This move not only protects government infrastructure but also prevents potential financial losses and ensures that employees focus on their official duties. It also serves as a reminder that unauthorized use of company equipment for personal gain is not tolerated. As more cases of public and private sector individuals misusing resources for crypto mining come to light, it is crucial for governments and organizations worldwide to establish clear guidelines and regulations to prevent such abuses.

Proposed Ban on Cryptocurrency Mining for Brazil's Military and Police Forces
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