Venezuelan Authorities Shut Down Power Supply to Bitcoin Miners in Key State

Venezuelan Authorities Shut Down Power Supply to Bitcoin Miners in Key State

Regional authorities in one of the key states of the country, Carabobo, suspended the power supply of all registered miners, effectively shutting down their operations in the industrial state. While there have been no official explanations for this measure, some people with knowledge on the matter state the action was taken due to the enormous energy consumption these operations have in the zone.

Mining Operations Suspended in State of Carabobo

Regional authorities in Carabobo suspended the power supply of registered miners in the key industrial Venezuelan state yesterday, with no official explanation. People with knowledge of the matter allege that the mining userbase is consuming too much energy, threatening the power supply and the electric grid for the other subscribers.

According to Criptonoticias, which has allegedly been in contact with people affected by these measures, the national power corporation and the Venezuelan cryptocurrency watchdog, Sunacrip, are planning to meet to assess the situation and try to find a solution for miners to keep operating amidst the power contingency the state is supposedly going through.

Carabobo hosts an important part of the cryptocurrency and bitcoin mining companies that operate in the country, and this measure affects the sustainability of these operations.

Registered Mining

Cryptocurrency mining has been legal in Venezuela since Sunacrip passed a bill that regulated mining activities in the country. But all Venezuelans in the industry must obtain a license issued by Sunacrip. Miners must also detail their activities and keep a record of these for 10 years, according to the law. However, there are many miners that don’t trust the government and have decided to mine underground.

This measure might be a pressure signal to all miners, to make them register with the national watchdog and to start mining in a legal fashion. Another potential reason for this suspension is that government officials could have foreseen an unstable power grid situation occurring at the same time the election of government party officials happened this weekend. However, sources explain that the measure would have been suspended after the electoral process, were that the case.

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

What do you think about regional authorities shutting down miners in the Carabobo state of Venezuela? Tell us in the comments section below.