Thu. Sep 28th, 2023

• Venezuela has experienced hyperinflation for almost 40 years, leading to an increase in crypto mining as an alternative means of earning a living.
• In March 2023, Venezuelan authorities banned crypto mining after uncovering a money laundering scheme involving state-run Petro and PDVSA.
• This decision effectively destroyed the Venezuelan crypto sector and caused individuals involved in the corruption scandal to be arrested.

Venezuela’s Economic Crisis

Venezuela has been dealing with double-digit inflation for almost 40 years with no interruptions. In 2016, it officially entered a state of hyperinflation, where the general price level of goods and services rapidly increases by more than 50% per month, destroying the worth of its currency and economy. Desperate Venezuelans began investing in crypto mining as an alternative means of earning income.

Crypto Mining Ban

In March 2023, Venezuelan authorities uncovered a money laundering scheme utilizing Petro wallets to redirect transactions to the state-run oil company Petróleos de Venezuela SA (PDVSA). As a result, they decided to ban all crypto mining activities within the country. Around 80 people were arrested in connection with this scheme including former technology minister Hughbel Roa and Joselit Ramírez who managed one of the crypto agencies under investigation. The intelligence police have also been auditing miners for any further connections related to this crime but so far no miners have been charged yet.

Government Promoted Crypto

Despite their current stance on crypto mining, Venezuelan dictator Nicholas Maduro had previously encouraged Venezuelans to use government-issued Petro as a substitute for its failing Bolivar currency and avoid U.S imposed sanctions on them at the same time. Unfortunately, his efforts were short lived due to this corruption scandal that led to the eventual ban on cryptocurrency mining activities across Venezuela’s economy .

Consequences Of The Ban

The ban on cryptocurrency mining not only resulted in those connected with this money laundering scandal being arrested but it also effectively killed off Venezuela’s entire crypto sector since most miners had already stopped operations out of fear before even hearing about the suspension. This decision has left many Venezuelans without an alternate livelihood during these difficult times and further destabilized their already desolated economy .


It remains uncertain whether or not Venezuela will ever lift its ban on cryptocurrency mining considering its current stance against cryptocurrencies . It is likely that even if they do decide to lift it , there won’t be much enthusiasm from miners due to distrust towards government policies which might drive away potential investors .

By admin