- Venezuela had approved cryptocurrency mining in the country
- Miners will have to register and mine to a national pool
- Penalties will be handed down to those who mine outside of the rules
Venezuela has given the green light to crypto mining in the country, as long as miners send their coins to a national mining pool. Venezuelan news outlet CriptoNoticias reported in the week that the move had been authorized by Joselit Camacho, head of National Superintendency of Crypto Assets and Related Activities (SUNACRIP), and appeared in the Official Gazette on Monday. Like Iran, Venezuelan crypto miners must apply for a license and will be listed on a government register, with those mining outside the law being punished.
Venezuela Starts Mining Register
Venezuela has long seen cryptocurrency as a means of circumnavigating sanctions, with the sovereign cryptocurrency, the Petro, famously launching in 2018. Having seemingly turned their back on more traditional cryptocurrencies, Venezuela seems to have performed an about face and has adopted mining of cryptocurrencies, as long as they get their cut.
Crypto mining license applicants will be required to hand over information on the nature of their mining activities, and will need to keep records of their mining activities for 10 years. Unlike with regular mining where users can decide which pool they mine to, crypto miners in Venezuela will have to carry out their work through an official National Digital Mining Pool, with those operating outside it facing penalties.
Forcing miners to a central national pool will mean that the government is able to control income earned from the pool’s rewards, paying out a percentage to contributors and keeping a healthy chunk for itself.
Manufacturers Also Face Licensing
Alongside miners themselves, manufacturers of mining equipment will also have to apply for a special license, with the manufacturing and importing of mining equipment being carefully supervised by Venezuelan authorities.
This nationalization of cryptocurrency mining in Venezuela will not go unnoticed by the likes of the U.S., where Camacho is wanted on money laundering and sanctions evasion charges. The tacit approval of cryptocurrency mining in the country in order to illegally boost the country’s coffers will likely add a few more dollars to the $5 million bounty already on offer for information leading to his arrest.