Venezuelan Government Takes Control of Crypto Mining Industry

The Venezuelan government is trying to take control of the cryptocurrency operations in the country. It has recently legalized Crypto Mining Crypto Mining Cryptocurrency mining is defined as the process through which the transactions of a digital currency are authenticated then published to blockchain. For every crypto transaction conducted, a crypto miner is in charge of authenticating the information which, if approved, is then updated in the blockchain. Currently, the most popular cryptocurrencies being mined are Bitcoin, Litecoin, Ethereum Classic, Monero, and DASH. How is Cryptocurrency Mined?The process of crypto mining itself involves the s Cryptocurrency mining is defined as the process through which the transactions of a digital currency are authenticated then published to blockchain. For every crypto transaction conducted, a crypto miner is in charge of authenticating the information which, if approved, is then updated in the blockchain. Currently, the most popular cryptocurrencies being mined are Bitcoin, Litecoin, Ethereum Classic, Monero, and DASH. How is Cryptocurrency Mined?The process of crypto mining itself involves the s Read this Term, but also mandated miners to join the National Digital Mining Pool.

Reported by local crypto news website CriptoNoticias, Joselit de la Trinidad Ramirez Camacho, Venezuela’s head of National Superintendency of Crypto Assets and Related Activities (SUNACRIP), signed the new decree published in the Official Gazette on Monday.

Interestingly, Ramirez is one of the most wanted persons in the United States for his involvement with drug cartels and there is a bounty of $5 million on his head.

Per the new law, any local entity willing to mine Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term needs to register themselves with the government and must apply for a license. In addition, the applicants need to share their mining-related details with the government and need to keep a record of their activities for 10 years.

The Venezuelan government will additionally supervise all imports and manufacturing of crypto mining hardware in the country, establishing a total control on the industry. Moreover, the equipment manufacturers and data centers have to apply for another license.

However, the most controlling prospect might be the mandate of joining the national mining pool. With this, the authoritarian government of the company can control the payouts and impose taxes at the source.

Crypto to the Rescue

Venezuela is suffering from a troubled economy as the plummeting oil prices and sanctions on the country led to hyperinflation. With the scrap value of fiat, a large part of its citizens turned toward using cryptocurrencies.

The Nicolás Maduro-government itself launched an oil-backed cryptocurrency to circumvent the international sanctions and is aggressively pushing to make it mainstream.

Earlier this month, the country banned access to US-based crypto exchange, Coinbase and remittance platform, MercaDolar as its latest move to curb international transfers.