Venezuelan Authorities Legalize Crypto Mining with New Regulations

Crypto mining is legal in Venezuela via decree by Sunacrip. It further centralizes crypto mining including the distribution of profits.

By · Sep 24, 2020 . 6min read

Venezuelan Authorities Legalize Crypto Mining news
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As per new reports, Venezuela has now legalized bitcoin mining following the decree lately issued by the Sunacrip (National Superintendency of Crypto Assets and Related Activities). All entities and individuals involved in legally mining bitcoin and other cryptos must instantly apply for a license from the agency, as part of the new regulations. The report states that it intends to develop NDMP (National Digital Mining Pool). This body attempts to bring together all the miners operating in the Venezuelan territory. 

What does the New Crypto Mining Regulation Entail?

The new decree regulating crypto mining was published in the Official Gazette on Monday. It was authorized by Joselit Ramirez, head of National Superintendency of Crypto Assets and Related Activities (SUNACRIP). It asserts that any local entity wanting to mine cryptos must apply for a license. Additionally, applicants will need to submit their data to the authorities on the nature of their mining activities. However, they must keep their mining-related records for ten years. According to the report, manufacturers of mining equipment or mining data centres will apply for a special license. Centralizing mining in this way will indicate that the government can manage any income earned from the pool’s combined mining rewards and payout to contributors.

In order to ensure miners follow these new regulations, the decree further elucidates that the authorities will manage both the development and import of mining equipment. Furthermore, mining farms for bitcoin and other cryptos will be capable of operating with the State’s support. However, only if Sunacrip inspects them.

Centralized Mining Opposes the Core Idea of Bitcoin

Venezuela’s authorities allege that Bitcoin mining has flagged the way for extended speculation on the dollar’s value and repeal the country’s financial controls. The RIM (Registry of Miners) processes licenses through the web. Moreover, it will involve equipment manufacturers and those engaged in developing mining farms. Anyone functioning outside the pool will be venturing a substantial fine.

The registry remains the cause of alarm and disappointment for crypto miners in the country. They fear that revealing their income and activity might draw criminals and shady government officials’ consciousness. However, they also have lamented about extortion attempts. Additionally, the State’s struggles to centralize crypto mining also goes against the centre philosophy of Bitcoin.

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