Cryptos Now Nationalized – Venezuelan authorities have announced that cryptocurrency mining will be nationalized and subject to strict control. Minors are required to join the government mining pool under penalty of penalties.
Mining regulated by a SUNACRIP decree
Venezuela recently legalized cryptocurrency mining, but the constraints are great. The rules which now apply to the entire mining industry are set in a decree published in the official journal of the Bolivarian Republic earlier this week.
Joselit de la Trinidad Ramirez Camacho is the signatory. The man, whose head is being put at a price by the US government, heads SUNACRIP . This is the Superintendencia Nacional de Criptoactivos, the body regulating crypto activities in the country.
Minors must now register their activities with the authorities and apply for a license . They must also keep all traces of their activities for 10 years . The Venezuelan government will oversee the importation of mining equipment into the country. Venezuelan equipment manufacturers will also be checked and will have to pay a specific license.
Maduro’s government has also set up a national mining pool . Minors are obliged to be attached to it and incur penalties in the event of disobedience.
Thus, all income from crypto mining will be taxed and redistributed fairly among miners
This obviously poses a problem for minors. If they refuse to cooperate, their government provides heavy penalties . If they mine on behalf of the government, they expose themselves to US sanctions . Indeed, the United States punishes all economic activity in collaboration with the government of Maduro. This situation recently prompted the Paxful platform to cease all activity in Venezuela.
Some minors who have had concerns with the government (including the seizure of their equipment ) see the news positively. Others will have to give up their activities, being unable to create a private pool .
Oil-backed crypto state (petro) is touted as a way around US sanctions. Nicolas Maduro tries to impose it on the population by all means . On the other hand, using Bitcoin or other decentralized cryptos to escape inflation and capital controls is strictly prohibited.