Home

Products

Institutions

Resources

Company

Language

English

简体中文

繁体中文

한국어

Amber Group logoAmber Group logo

Home

Products

Institutions

Resources

Company

Sign Up

En

简体中文

繁体中文

한국어

Market News / 

Venezuelan Government Plans to Regulate All Bitcoin Mining

Venezuelan Government Plans to Regulate All Bitcoin Mining

C

cryptobriefing | 2020/09/24

Bitcoin miners will need to register with the country's cryptocurrency office.

Key Takeaways

l  New rules in Venezuela will legalize cryptocurrency mining but impose heavy restrictions on miners.

l  The country will create a registry of miners and a central mining pool to control the industry.

l  Venezuela has also cracked down on mining in the past.

Regulators in Venezuela have introduced a mandate that will regulate all Bitcoin mining and crypto mining. The new rules have been published in Venezuela's Official Gazette, file #41,969.

The New Rules

Though the mandate legalizes mining, all residents who want to mine Bitcoin must first obtain a license from SUNACRIP, Venezuela's National Superintendency of Crypto Assets and Related Activities.

Venezuela will create a Comprehensive Registry of Miners to keep records of this data. Individual miners must describe their activity, their equipment, and other related information. Larger mining farms and ASIC operators will unite all Venezuelan miners, who will be required to obtain special licenses.

Additionally, Venezuela will create a National Digital Mining Pool, which will unite all Venezuelan miners and allow profit-sharing. It appears that this will be mandatory but minimally enforced.

SUNACRIP will offer incentives for those who join the pool and impose penalties on those who do not.

Mining In the Past

This is not the first time that mining-related issues have come up in Venezuela. Reports dating back to 2016 suggest that Venezuelan Bitcoin miners have been fined and arrested for mining crypto; other reports suggest that the government has seized Bitcoin mining equipment from individuals.

These new regulations have raised concerns among the crypto community. Bitcoin mining in Venezuela will be controlled by a central authority, which undermines the Bitcoin community's desire for decentralization.

Along with centralized power that has been achieved by companies like Bitmain, it is questionable whether mining is truly the best way to achieve decentralization.

However, despite the harsh regulations, it is unlikely that regulators will be able to gain total control over mining. Any mining activity that does not use a large amount of electricity or special equipment (such as CPU mining) is unlikely to be detected.

 

Original title: Venezuelan Government Plans to Regulate All Bitcoin Mining

 

Disclaimer

 

The views expressed in this article are the author's own and do not necessarily reflect the view of Amber Group. Amber Group shall not be held liable under any circumstances for any losses, damages or expenses arising from the use of any content mentioned in this article.

 

The information contained on this website is provided for informational purposes only, with no warranties, or guarantees made as to the accuracy, completeness or timeliness of it. Amber Group assumes no liability or responsibility for any errors or omissions in the information contained on this site. We strongly encourage you to conduct your own research before taking any action.

 

This site may contain copyrighted material, the use of which has not always been specifically authorized by the copyright owner. If you wish to use the copyrighted material from this site for the purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner. Authors or publishers who claim ownership of copyrighted articles reprinted on this website and wish for the content to be removed may email us directly at official.accounts@ambergroup.io

 

If you would like to connect with us about any of the distributed content or other inquiries, please email us at official.accounts@ambergroup.io with the relevant documentation.


View Original Article >

Most Popular
The New Mate 40 Is Equipped with Digital Currency Wallet
China’s digital yuan looks closer than ever to launch with the news that Huawei will be supporting the central bank digital currency (CBDC) on an upcoming range of phones.
The Digital Yuan Pilots Have Processed $300M So Far According to PBoC Offical
China’s digital yuan pilot program is picking up speed.
US Fed Is Broading Its Research on CBDC to Explore its “Intrinsic” Value Drivers
Fed economists are beginning their deep dive into CBDC research, hoping to identify the "intrinsic" value drivers of a digital dollar.