Venezuela legalizes crypto mining, but all miners would have to join a national pool.

Venezuela has announced the legalization of crypto mining in the country, but all crypto miners would have to join a national mining pool.

According to local crypto news source CriptoNoticias, Venezuela has announced the legalization of cryptocurrency mining in the country, but with the caveat that all miners join the national mining pool. Crypto mining was legalized by decree by the head of National Superintendency of Crypto Assets and Related Activities (UNACRIP), Joselit Ramirez. The announcement came in the form of a notice published in the Official Gazette this month. Any local entity that wants to begin block reward mining in the country must first obtain a license from the government. 

 

Companies must be listed on a government register of block reward miners. 

Crypto mining companies must be listed on a government register of block reward miners. Those becoming licensed are then subject to further compliance requirements, including handing over all information about their mining activities to state authorities and keeping detailed mining records for a period of 10 years. There will also be licenses available for mining equipment and mining data centers, which have also been legalized under the new rules. The regulator will oversee the import of mining equipment. 

 

Crypto miners need to join the National Digital Mining Pool. 

 The major caveat for those wishing to be licensed to mine cryptocurrency in Venezuela is the need to join the National Digital Mining Pool, with fines and licensing penalties for anyone operating independently of the mining pool. This centralization of mining power would mean that the Venezuelan government can determine how much income miners earn from the pool and pay out the contributions. According to the local media reports, this could also allow the government to cut off income from the mining pool altogether or charge taxes before payment has been made. 

Venezuela has already issued a cryptocurrency backed by state oil reserves, the Petro, which it has used to evade international sanctions.

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Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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