Authorities in Venezuela's Carabobo region suspend power supply to registered miners in Venezuela's main industrial state

Authorities in Venezuela's Carabobo region yesterday suspended power supply to registered miners in the main industrial state without official explanation. People familiar with the matter said the mining user group was consuming too much energy, threatening the power supply to other users and the grid.

According to Criptonoticias, the national power company and Venezuela’s cryptocurrency regulator Sunacrip are planning to meet to assess the situation and try to find solutions for miners to continue operating despite these measures. Carabobo is a major region with cryptocurrency and Bitcoin mining companies operating in the country, and this measure affects the sustainability of these operations.

Cryptocurrency mining has been legal in Venezuela since Sunacrip passed a bill regulating mining activities in the country.

But all Venezuelans in the industry must obtain a license issued by Sunacrip.

Under the law, miners must also detail their activities and keep records for 10 years. However, there are many miners who do not trust the government and decide to mine underground. This measure could be a pressure signal for all miners to register with the national regulator and start mining in a legal manner.

Another potential reason for the suspension is the possibility of unstable power grid conditions as elections for government party officials are being held this weekend. If this is the case, the measure will be suspended after the election process, the source said.