Venezuelan authorities have announced a stringent crackdown on Bitcoin mining operations, citing their detrimental impact on the nation’s energy grid amidst an ongoing energy crisis. The Venezuelan National Power Ministry unveiled a comprehensive operation aimed at supervising high-power customers, including Bitcoin miners, connected to the national power grid. The ministry outlined plans to disconnect all cryptocurrency mining farms in the country from the electrical system to alleviate the strain on energy demand caused by these activities.
Governor Rafael Lacava of Carabobo state spearheaded a series of actions resulting in the confiscation of more than 11,000 ASICs (Application-Specific Integrated Circuits) and the shutdown of numerous cryptocurrency mining farms. The primary objective of these measures is to curb energy consumption by mining operations, particularly as Venezuela grapples with frequent blackouts stemming from challenges in power generation exacerbated by climate conditions and international sanctions. Lacava emphasized the necessity of prioritizing energy availability for the general population over the uninterrupted operation of mining activities.
Paraguay Cracks Down on Illegal Bitcoin Mining: Over 550 Miners Seized
In a parallel move, Paraguayan authorities are intensifying efforts to combat illegal Bitcoin mining activities that leech power from the country’s grid without proper authorization or payment of electricity fees. The National Power Administration (ANDE) uncovered two Bitcoin mining farms utilizing artificial intelligence (AI) software and advanced distribution maps to avoid detection.
In coordinated raids, authorities seized 396 Bitcoin miners in the Paraguari department on May 19th and an additional 176 miners in the Canindeyu department on May 22nd. These operations targeted facilities that circumvented power measurement equipment to unlawfully access energy resources. Additionally, authorities confiscated two transformers, each with a capacity of 1,000 KVA, highlighting the significant power consumption associated with illicit mining operations.
Central Bank of Brazil Set to Finalize Crypto Regulations
Meanwhile, the Central Bank of Brazil has unveiled plans to expedite cryptocurrency regulation initiatives, aiming to provide clarity and oversight for virtual asset service providers (VASPs) and stablecoins operating within the country. The regulatory roadmap outlined by the bank encompasses three key phases: a public consultation on general standards for VASPs, internal planning for stablecoin regulation focusing on payments and foreign exchange, and finalizing the rules governing the entry of VASPs into the Brazilian market. The initiative reflects Brazil’s commitment to fostering a regulated and secure environment for cryptocurrency transactions while addressing potential risks associated with their use.
