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Bitcoin Mining Legalized in Venezuela But Being Centralized with National Digital Mining Pool

  • Venezuela has fully legalized bitcoin mining.

According to a recent decree from the National Superintendency of Crypto Assets and Related Activities (SUNACRIP), the use, commercialization, import, and creation of mining equipment in the country is regulated under the new law, as per the local media reports.

As per the decree that came into effect this week, those residents interested in mining bitcoin and other cryptos must apply for a license with the Comprehensive Registry of Miners (RIM), which will facilitate the processing of licenses.

A special license will be granted to those users who wish to manufacture using ASIC equipment or built mining farms. Such users are required to provide information about the type of mining activities they are carrying out.

Besides supervising the creation and import of mining equipment, the authorities will also inspect the mining farms, without any exceptions. Additionally, those involved in mining in Venezuela must keep their documentation and records for ten years.

The cost of managing these licenses is not known yet but will be published later by RIM.

The document further confirms creating a National Digital Mining Pool to bring together all the miners in the territory, and those operating outside the pool will be subject to sanctions and infractions.

By making mining centralized, the government would be the one to control the income earned in the form of rewards from mining BTC and further distributing it among the contributors. This means, the government can impose taxes on the payments and even freeze them altogether.

Venezuela is currently going through an economic and political crisis on top of the hyperinflation and sanctions led by the US. Previously, President Nicolas Maduro launched an oil-pegged crypto called petro, which the US Department of Justice alleged is used to circumvent the sanctions and conceal illicit drug-related transactions.

Also Read: Venezuela Blocks Access to Coinbase & Currency Exchange Platform MercaDolar

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