Working outside the pool will be illegal.
The Venezuelan authorities have legalized mining and related activities (including the production of specialized equipment). Industry participants were offered to mine digital assets as part of a national mining pool. Private work outside of it was banned. The authorities plan to fine miners who will mine cryptocurrency without connecting to the national pool. Information about this appeared in the local media.
Companies and participants in the cryptoindustry who plan to engage in mining and related activities in the country were offered to obtain a license. To do this, you must submit documents for consideration to the Office of Digital Assets and Related Activities (SUNACRIP). After verification, if a positive decision on issuing a license is made, the user or company will enter the state register.
An official permit gives the right to work in the mining industry in Venezuela for a period of 10 years. Throughout the period, licensed companies and individuals will be required to report on their performance to local regulators.
As of this writing, Venezuela’s share of the bitcoin hashrate is 0.46%. Perhaps a local government initiative will help local miners improve their performance.
Earlier, a similar initiative – the creation of a national mining pool on the territory of the Russian Federation – was proposed by specialists from RACIB. After prolonged testing of the platform, the Bank of Russia decided to refuse to launch the project. The RACIB team found the decision to be groundless. For comparison, the share of Russia in the bitcoin hashrate is 6.08%. At the same time, China remains the industry leader for a long period of time.
The level of profitability of mining in a particular country largely depends on the cost of electricity. According to the Elitemininginc map, mining of digital assets in Russia is more profitable than in Venezuela.
Recall that in 2018, the Venezuelan government launched the national cryptocurrency – El Petro. According to the plan, the digital asset was supposed to be the country’s response to the Western sanctions pressure. Also, regulators planned to use El Petro to combat hyperinflation. To do this, the cryptocurrency provided with the country’s oil reserves, was tied to the salaries of local residents. Despite this, demand for traditional digital assets in Venezuela has continued to grow.