Jul 222 mins read

Venezuelan Government Legalizes Cryptocurrency Mining Industry

Mixed news for cryptocurrency miners in Venezuela

Venezuelan Government Legalizes Cryptocurrency Mining Industry

The Venezuelan government has issued some mixed news for cryptocurrency miners. According to local media CriptoNoticias on Tuesday, the regulatory agency responsible for overseeing cryptocurrencies in Venezuela has legalized the mining industry.

However, all mining activity will have to be conducted through the official National Digital Mining Pool, and any local entities wishing to mine cryptocurrencies will have to apply for a permit and register with the government.

Equipment manufacturers and data centers will be able to apply for special permits, but all mining equipment imports and manufacturing will be monitored by Venezuelan authorities.

The move allows the Venezuelan government to control revenue from the mining pool and mining rewards, although it could also freeze or delay payments to miners and impose taxes before paying out mining profits.

In recent years, Venezuela's economy has suffered due to mismanaged economic policies and U.S.-led economic sanctions. President Nicolas Maduro previously launched a cryptocurrency called Petro, which was tied to oil, to bring in much-needed foreign currency, but the U.S. Department of Justice has accused him of using cryptocurrencies to hide drug trafficking transactions.

Venezuelan Flag

Bitcoin miners

Venezuelan President Nicolas Maduro

Ramirez, director of Venezuela's National Superintendency of Crypto Assets and Related Activities, is wanted by the US Department of Justice on charges related to corruption and drug trafficking.

Ramirez Image source: CNN

Ramirez is facing charges related to accusations of using his position to facilitate transactions in illegal drugs, bribes, and embezzlement of state funds. The US authorities have labeled him a key figure in a vast network of bribery and money laundering involving the country's oil industry.

Venezuela Image source: Deutsche Welle

This latest development highlights the extent of corruption and criminal activity that has plagued Venezuela in recent years, with the Maduro regime being accused of presiding over a corrupt and dysfunctional state. The US has been one of the most vocal critics of the regime and has imposed economic sanctions on the country in a bid to force political change.