The Mining industry in Venezuela now has its own regulatory framework. The National Superintendence of Cryptoactives and other Related Activities published on Monday the “Providence that regulates the activities related to the use, import, commercialization of Digital Mining equipment.”
The legal instrument appeared in Official Gazette No. 41,969 and is already in effect. It would be the first law specifically created to regulate the cryptocurrency mining sector in a country… But not everything is as good as it looks.
One Point for Extreme Centralization of a Decentralized Project
The legal instrument mandates all miners, assemblers, or providers of mining services to join a Special Registry of Miners. This is a fundamental requirement for obtaining the necessary licenses to carry out the activity legally.
Also, a “National Digital Mining Pool” is created by law to bring together all the independent miners who live in the country. Venezuela is currently the Latin American country with the most hash power, the most adoption, and the most trading activity. The law also says that the Venezuelan government may grant benefits, incentives, and propose exemptions to encourage digital miners to join the national pool.
However, the coin has an ugly side —a very ugly one. Every Venezuelan who engages in the activity is unable to choose which pool to join since from today onwards, they must mine for the government’s pool unless they are willing to pay hefty fines:
Article 19. Users who engage in digital mining without being connected to the National Digital Mining Pool will be subject to the measures, infractions, and sanctions set by the Constituent Decree on the Integral Cryptoactive System.
Similarly, the document now establishes that the creation of mining farms will be done “under the technical and professional supervision of its personnel.” In this way, Sunacrip officials could have greater personal control over new mining ventures.
Venezuela Always Sparks Debate with its Decisions
The news sparked controversial reactions from experts in the field. Venezuela is one of the most corrupt countries in the world, and giving the state control over mining activity and “profit distribution ” generated by it could potentially harm all Venezuelan miners whose earnings would now be controlled by a government entity.
However, there is a positive side: Although crypto mining was never illegal – as some media say – the truth is that it has been persecuted for a long time. Perhaps this new legal order will put an end to this period of uncertainty for the industry… That is, assuming that the miners feel comfortable with giving control of their business to the Venezuelan government.
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Author: Felix Mollen