• Venezuelan authorities have cut off power to Bitcoin miners in a critical state

  • Regional authorities in one of the country’s most important states, Carabobo, have cut off power to all registered miners, effectively shutting down their operations in the industrial state. While no official explanations have been provided, some people with knowledge of the situation believe the action was taken due to the enormous energy consumption these operations have in the zone.

    Mining operations in the state of Carabobo have been halted.

    Regional authorities in Carabobo, Venezuela’s key industrial state, cut off power to registered miners yesterday, with no official explanation. According to sources familiar with the situation, the mining userbase is consuming excessive amounts of energy, threatening the power supply and the electric grid for the rest of the 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 a meeting to assess the situation and try to find a solution for miners to continue operating despite the state’s alleged power outage.

    Carabobo is home to a significant number of cryptocurrency and bitcoin mining companies in the country, and this measure has an impact on the long-term viability of these operations.

    Mines that are registered

    Since Sunacrip passed a bill that regulated mining activities in the country, cryptocurrency mining has been legal in Venezuela. However, all Venezuelans working in the industry must obtain a Sunacrip license. According to the law, miners must also detail their activities and keep a record of them for ten years. However, many miners do not trust the government and have chosen to mine underground.

    This measure could serve as a warning to all miners to register with the national watchdog and begin mining legally. Another possible explanation for the suspension is that government officials anticipated an unstable power grid situation occurring at the same time as the election of government party officials this weekend. However, sources say that if that were the case, the measure would have been suspended following the election.

    Insiders in the industry have decided not to make any compromising comments about the measure until they can meet with the authorities in charge of implementing it this week.

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