Venezuela Will Regulate BTC Mining

Venezuelan authorities have introduced a mandate that regulates all cryptocurrency activities, including mining. The mandate has legalized mining. However, it requires interested people to first get a license from Venezuela’s National Superintendency of Crypto Assets and Related Activities (SUNACRIP). 

The country plans to create a Comprehensive Registry of Miners to keep records of this information. Individual miners should describe their activity, their equipment and other related information. Large mining farms and ASIC operators must obtain special licenses. 

Venezuela will also form a National Digital Mining Pool to unite all Venezuelan miners and allow profit-sharing. This protocol appears to be mandatory yet minimally enforced. SUNACRIP will offer incentives for those who join the pool and charge penalties on those who do not. 

The new mandate has raised some concerns in the cryptocurrency community. A central authority will control BTC mining in Venezuela, undermining the Bitcoin community’s collective goal of complete decentralization.

Mining-related issues have come up in Venezuela before. According to a CryptoBriefing report, Venezuelan BTC miners have been fined and arrested for mining in the past. There have also been incidents where the government has seized Bitcoin mining equipment from individuals.