Venezuela's Ongoing Crackdown on Bitcoin Mining Continues as Army Seizes 35 Rigs

Venezuela’s efforts to clamp down on illegal Bitcoin mining remain active, with the latest incident involving the seizure of 35 mining rigs by the nation’s military. This recent raid took place in Guárico, as part of an ongoing campaign against unauthorised crypto mining operations.

Mining Operations Targeted Amidst Government Regulation Efforts

Despite President Nicolás Maduro’s statements about steering the nation back towards cryptocurrency adoption, military and police forces persist in their crackdown on miners operating without legal permits. The mining rigs, alongside other equipment, were seized by soldiers who claim the miners lacked the necessary authorisations for their activities.

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The seized items included 30 "extractors" and several industrial-strength electric fans. These operations were conducted in collaboration with Public Ministry officials, targeting a mining setup in a private house located in the El Mirador District of the Juan Germán Roscio Nieves municipality.

Military Actions and Government Stance

Domingo Hernández Lárez, the operational strategic commander, highlighted that these Bitcoin mining operations were unauthorised and tapped into the National Electric System (SEN) illegally. The Venezuelan government has repeatedly attributed frequent power outages in the country to such illegal mining activities, which are seen as placing undue strain on the nation’s power grid.

In a separate statement, the Ministry of Electrical Energy emphasised that cracking down on illegal miners is crucial for maintaining a reliable electricity supply to citizens. The government views these unauthorised mining operations as a threat to the stability of Venezuela's energy networks, arguing that removing them will help alleviate pressure on the grid.

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Shifting Priorities in Venezuela's Crypto Landscape

Interestingly, this ongoing crackdown appears to contrast with previous government initiatives. At one point, the Venezuelan government had enlisted the military to actively engage in Bitcoin mining as part of a broader push towards cryptocurrency adoption. However, the focus has now shifted towards dismantling illegal operations, with soldiers being redeployed to enforce the government's strict regulations on the sector.

A Country Struggling to Balance Crypto Aspirations and Regulatory Enforcement

Venezuela's approach to cryptocurrency mining highlights the tension between fostering innovation and enforcing regulations. While President Maduro's statements suggest a desire to embrace crypto, the reality on the ground reflects a country struggling with infrastructure challenges and the need to control unauthorised activities. This crackdown, though necessary for maintaining order, may hinder the broader adoption of cryptocurrency in Venezuela.