Mining cryptocurrencies in Venezuela

The authority for the supervision of cryptographic assets and related activities in Venezuela, SUNACRIP, has issued its first decree, which officially regulates all activities related to cryptocurrency mining. To qualify for the special register, miners will have to meet certain requirements.

The official announcement was first published in Gaceta Oficial and signed by José Ramirez, Head of SUNACRIP. It was found that the residents of Venezuela who are interested in mining Bitcoin (BTC) and other cryptocurrencies must apply for a license and join the so-called “national pool”.

The regulations require miners to inform what kind of activities they wish to perform in the field of cryptocurrency mining and subsequent use of coins. The government will also issue a special license for those who want to produce ASIC mining equipment or build mining farms.

The national pool

As for the ‘national pool’, SUNACRIP defined it as follows:

“A group of interconnected miners agreeing to share profits from blocks in proportion to the computing power used to mine”.

The decree also states that SUNACRIP may offer advantages, incentives and even ‘tax exemptions to encourage miners to join the national pool’. The new regulation does not clarify what sanctions will be imposed on those who mine cryptocurrencies outside the national pool.

Cryptocurrency miners should apply for licenses through a comprehensive service register in Cryptoassets or RISEC, a system operated by SUNACRIP.

In addition, the Venezuelan Minister of Environment and Housing, Ildemaro Villarroel, recently announced that cryptocurrency mining would not be allowed in any state housing or in districts that are a part of the “Gran Misión Vivienda” project.