Venezuela legalised bitcoin (BTC) and altcoin mining this week and issued its own regulatory framework.
The Venezuelan government clarified that miners will have to obtain licenses and agree to be supervised by regulators.
On Monday 21 September, Venezuela’s National Superintendence of Cryptoactives and other Related Activities (SUNACRIP) issued the “Providence that regulates the activities related to the use, import, commercialisation of Digital Mining equipment.”
To clarify, Venezuela’s government published decree No. 41,969 in its official gazette. This is the first law in the country that regulates the cryptocurrency mining sector.
According to Cryptopotato, it mandates all miners, assemblers, or providers of mining services to join a Special Registry of Miners. Being registered is a requirement for obtaining the necessary licences to carry out the activity legally.
Crypto News clarified that SUNACRIP did not mention how much a licence would cost. However, it will publish the prices via an online application system that is currently in construction.
More about Venezuela’s decree
Upon the decree, there will be a “National Digital Mining Pool” to gather all the independent miners in Venezuela.
The government may grant benefits and incentives, as well as propose exemptions. This is to encourage digital miners to join Venezuela’s national pool in accordance with the law.
Meanwhile, anyone who engages in the activity is now unable to choose which pool to join following the law’s enactment. They must mine for the government’s pool unless they are willing to pay hefty fines:
Article 19. Users who engage in digital mining without being connected to the National Digital Mining Pool will be subject to the measures, infractions, and sanctions set by the Constituent Decree on the Integral Cryptoactive System.
Moreover, it stipulates the creation of mining farms to be done “under the technical and professional supervision of its personnel.”
In May, the Cambridge Centre for Alternative Finance (CCFAF) issued the Bitcoin Mining Map.
The map revealed that Venezuela is Latin America’s biggest bitcoin miner. In addition, Venezuela is also one of the top ten globally.