The Venezuelan cryptocurrency mining industry is finally set for massive expansion, following recently stipulated regulation on mining. The government has recognized and prepared a strategy to regulate crypto mining activities. Many people believe this is an important development that will increase more cryptocurrency activity in the country.
Venezuela is reportedly the largest amongst Latin American countries in crypto mining, and also one of the ten largest countries globally. This shows that the residents are interested in mining. Now with the new regulation, they can choose to do so legally by obtaining a mandatory license.
Crypto Mining Now Legal in Venezuela
Under the new regulation, cryptocurrency miners in the country are required to obtain a license before they begin operations. The license will be processed and issued by the Comprehensive Registry of Miners (RIM). The license required for any activity related to crypto mining, including the creation, importation, usage, or commercialization of mining equipment.
One of the requirements for the license is that the interested miners must specify the exact activity they wish to engage in. Those looking to developing mining machines like ASIC have to apply for a separate license. This applies to those who wish to set up crypto mining farms in the country, according to the report.
Meanwhile, this new regulation has already been published in the Official Gazette of the Republic. It was reportedly signed into effect this week by Joselit Ramirez; the superintendent at the country’s National Superintendency of Crypto Assets and Related Activities (SUNACRIP)
In addition, miners have been asked to keep a record of the crypto mining activity for ten years once licensed.
Bitcoin Miners Caught in Centralization
Another part of the report informed that Bitcoin miners are required to connect to a National Digital Mining Pool. This pool is intended to bring miners using ASIC together if they must mine legally in the country. However, this ensnares miners into centralization as this pool will be managed by a group of people or the government.
On this note, the Bitcoin miners are to expect the risks equally involved with centralization. This includes the risks of having a delay in payment. More so, the miners’ rewards or payment can easily be frozen, and taxes might be collected from them. Those who failed to join the pool may be sanctioned.