Block reward mining legal in Venezuela—as long as they join national pool

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Venezuela has announced that if all miners in Venezuela join a mining pool of their country, they will be legalized for all Bitcoin mining in the country.

The announcement was published in the Official Gazette earlier this week according to the decree of Joselit Ramirez, the head of National Superintendency of Crypto Assets and Related Activities (SUNACRIP).

First of all, a license from the government and be listed in the government registry of block reward miners is required for local organizations to start block reward mining in the country. They must comply with requirements that include handing general information about their fishing operations to the state authority and keeping detailed mining records for ten years.

Manufacturers or mining equipment and mining data centers will also have licenses and even be legalized under the new regulations. And the regulator will be in charge of overseeing imports and exports.

However, those who want to be licensed to mine cryptocurrencies in Venezuela need to join the National Digital Mining Pool; otherwise, they will be fined for operating independently of the mining pool.

This centralization of mining power means that, as well as paying out contributions; the Venezuelan government will decide how much money miners receive from the pool. As noted in local media, this may also cause the government to entirely cut off revenue from the mining pool or charge taxes before payment has been made.

Although this news is highly appreciated, the conditions are seen as less attractive options for domestic block reward miners.

A cryptocurrency backed by state oil reserves, Petro, has already been released by Venezuela, which it has used to escape foreign sanctions.

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