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Cryptocurrency : Bitcoin mining in Venezuela and the legalization of miners

** Content updated 07/04/21 at 13:25 (GMT -3)

According to current regulations, in Venezuela Bitcoin mining is a right for any citizen willing to undertake. Previously, the activity was penalized. However, it is currently in legal status.

The National Superintendency of Crypto Assets and Related Activities (Sunacrip) is the regulatory body for mining activity in the South American country. It was created in order to harmonize the digital mining industry with the energy capacities of that nation.

Cryptocurrency mining, as already highlighted, has been legal in Venezuela since 2018. Low energy costs have allowed the country to quickly enter the top 10 nations with the highest hash power. However, there are still many miners that have not caught up.

Are there guarantees for the Bitcoin mining business in Venezuela?

In Venezuela, Bitcoin mining is a right for those who want to invest in it. However, the situation of illegality of a large part of the miners complicates the outlook.

In this sense, duly registered miners are taking the initiative to promote the legalization of their colleagues. Legality is a difficult step to take, considering that mining was penalized for many years in the country. The feeling of secrecy is still latent, but legalization is the only possible way to strengthen the business.

The State does not persecute the miners, on the contrary, it wants them to continue mining, but in accordance with the legal framework. Many miners have equipment in residential or commercial areas. This negatively affects its environment, which is why Bitcoin mining is not allowed in such areas.

Illegal mining harms the miner and their environment

A mining farm in underground conditions, in legal terms, means that its owners are stealing a service that belongs to the nation.

Despite this, the State invites the miners to come out of hiding so that in the future they are not punished by justice.

It should be noted that an illegal miner causes problems in their environment for various reasons. For example, it is likely that 3 or 4 machines in a house can cause the transformer not designed for industrial activities to collapse. This is one of the many negative consequences of illegality.

Miners, police forces and the Sunacrip mining authority met this Friday to define the steps in favor of the legalization of Bitcoin mining farms in Venezuela.  Source: CTMiners, police forces and the Sunacrip mining authority met this Friday to define the steps towards the legalization of Bitcoin mining farms in Venezuela.  Source: CTMiners, police forces and the Sunacrip mining authority met this Friday to define the steps in favor of the legalization of Bitcoin mining farms in Venezuela.  Source: CTMiners, police forces and the Sunacrip mining authority met this Friday to define the steps in favor of the legalization of Bitcoin mining farms in Venezuela. Source: CryptoTrend

Streamlining the process

The pandemic conditions and the crisis of lack of fuel in Venezuela are a difficult obstacle to overcome for the miners. This has been an obstacle for many Bitcoin mining farm owners to consign their documents.

To solve this, Sunacrip recently opened an office in the center of the country, which will bring the possibility of processing closer to the center of the country.

Likewise, Sunacrip holds working meetings with miners and police forces every Friday. Their objective is to give greater stability to the business. At the same time, it works closely with the state electricity company (Corpoelec).

This Friday, for example, an important meeting was held in the city of Valencia, in which support for miners in the legalization process was planned.

** Explanatory note: This article was modified, since it cited an interview with the regional director of Sunacrip, which did not take place. In that sense, the corresponding editions of the content were carried out by CriptoTendencia to update it and prevent it from being given to interpretations outside the objective of the portal, which is to inform. The author hereby makes excuses for this misunderstanding and exempts the aforementioned official and Sunacrip from responsibility for the opinions previously issued.

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