Impact of Venezuela’s Mining Farm Disconnection Plan on Crypto Industry
Venezuela’s Ministry of Electric Power has announced a plan to disconnect all crypto mining farms that feed into the National Electric System (SEN). This decision affects miners operating with national electricity and was shared on the ministry’s official Instagram page. Let’s explore how this initiative will impact the crypto mining industry in Venezuela.
Support from National Authorities
– Venezuela’s National Electric Corporation (Corpoelec) and the Public Ministry (MP) endorse the plan
– Authorities emphasize restrictions on power supply to crypto mining farms, including those for Bitcoin
– Concerns over the stability of the national electrical system are cited as the primary reason for the disconnection
– Aim to end miners’ “free” electricity consumption
Urgency Emphasized by Government Officials
– Rafael Lacava, governor of Carabobo state, stresses the need for restriction
– Minister of Electrical Energy, Jorge Márquez, calls for reduced activity in data centers
– Local media report Lacava urging neighbors to notify about mining farms to avoid power cuts
Reasons for Disconnection
– High electricity consumption by crypto mining farms prompts the disconnection
– Allegations of causing power failures in surrounding areas by these facilities
– Intention to prohibit clandestine crypto mining reaffirmed by the government
Stated Objective
– Ministry of Electric Power aims to reduce demand impact for efficient service provision
– Uncertainty remains regarding the operation of miners outside the national electrical system
Hot Take: Will Venezuela’s Measure Stabilize the Crypto Mining Environment?
Venezuela’s decision to disconnect crypto mining farms poses challenges for the mining industry. While intending to stabilize the national electrical system and end free electricity consumption for miners, the move raises concerns about the future of crypto mining in the country. Crypto enthusiasts and industry observers await further developments to gauge the impact of these measures on the mining landscape in Venezuela.
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