Venezuela reaffirms crypto mining ban after power spike

The Venezuelan government reiterated a nationwide ban on cryptocurrency mining after the National Electric System reached a nine-year peak demand of 15,579 megawatts on May 7. Authorities attributed the rise to a heat wave and expanding economic activity and reported the surge prompted power rationing that is affecting households and businesses.

An official statement read, “The absolute ban on digital mining in the national territory is upheld. Those who illegally use this activity will be sanctioned as the law establishes.” The government announced an oversight plan to enforce the prohibition and warned that unauthorized operations will face penalties under existing law.

The statement linked the record demand to high temperatures and growing economic activity and cited international sanctions as complicating efforts to restore and maintain the electricity network. Authorities urged private companies to use available on-site generators to help stabilize the grid and the statement added that a formal plan to recover and transform the national electrical system will be presented.

Cryptocurrency mining requires large amounts of electricity. Venezuelan officials have restricted mining in the past to reduce pressure on an aging power system. Enforcement against illegal mining is taking place while rationing continues and officials work to avoid outages during the peak consumption period.

Some analysts and industry reports say bitcoin mining can be located at generation sites that lack transmission capacity, allowing use of otherwise stranded energy. The Russian Energy Ministry reported in February 2025 that controls on mining in regions such as Siberia cut local network load by more than 300 megawatts and helped avoid restrictions.

Venezuelan authorities did not provide a timetable for the new enforcement actions or full details of the grid recovery plan. The renewed focus on energy-intensive activities follows years of infrastructure shortfalls and recurring power problems that have affected businesses and consumers across the country.