State Control of Crypto Mining in Venezuela: How the Government Manages and Restricts Digital Mining

Feb, 10 2026

When Venezuela first announced it would take full control of cryptocurrency mining, many thought it was a bold move to save its failing economy. Others saw it as a power grab disguised as innovation. By 2026, the reality is neither. It’s a messy, broken system - half-law, half-chaos - where the government claims to regulate mining while its own agencies barely function.

How It Started: The Petro and the Birth of SUNACRIP

Venezuela didn’t just jump into crypto mining. It built a whole state-run machine around it. The push began in 2017 with the launch of the Petro, a government-backed cryptocurrency tied to oil reserves. But the real control mechanism came in 2019, when President Nicolás Maduro created the SUNACRIP (National Superintendence of Cryptocurrencies) through Presidential Decree No. 4,170. This wasn’t a suggestion. It was a mandate: all mining had to go through the state.

SUNACRIP was supposed to be the gatekeeper. It would issue licenses, track every mining rig, and collect a cut of the rewards. The idea was simple: use Venezuela’s cheap electricity to mine Bitcoin and other coins, then use the profits to fund government programs. But the system didn’t just regulate mining - it tried to own it.

The Rules: You Can’t Mine Unless the State Says So

If you want to mine crypto in Venezuela today, you have to follow a long list of rules - if you can even get past the bureaucracy.

First, you must register in one of two government databases: the Comprehensive Registry of Miners (RIM) or the Comprehensive Registry of Cryptoactive Services (RISEC). Both are managed by SUNACRIP. You need to prove you have at least 500 kilowatts of dedicated power, submit ID documents for every person involved, and register every single mining device you own. Approval can take 90 to 120 days.

Then there’s the National Mining Pool (NMP). This is the heart of the system. All mining rewards - whether you’re using one rig or a warehouse full - must flow through it. The NMP distributes Bitcoin and other coins to licensed miners, but it’s notoriously unreliable. Miners report delays of days or even weeks in getting payouts. Some say the system drops 15-20% of their potential earnings just from technical glitches.

And you can’t just mine anywhere. The government requires you to use state-approved energy sources. That sounds great - Venezuela has some of the cheapest electricity in the world, at about $0.03 per kWh. But here’s the catch: the power grid is collapsing. In 2023, miners in Caracas and Maracaibo faced 40 to 60 hours of blackouts each month. Many had to buy diesel generators just to keep mining, which pushed costs up by 25%. The cheap power advantage? Gone.

A government official looms over a crumbling agency tower as miners disappear into fog, one secretly using a phone.

The Crackdown: When the State Shut Down Its Own Miners

For a while, things looked like they were working. By 2023, over 500 licensed mining centers were operating. Some reports claimed they contributed 4% to Venezuela’s GDP. But then, in early 2023, everything changed.

A corruption probe hit SUNACRIP hard. The head of the crypto ministry and several oil industry officials were arrested. The entire agency shut down. No more licenses. No more registrations. No more payouts from the NMP. Around 300 mining operations vanished overnight. Some miners say their equipment was seized. Others just walked away.

In May 2024, the government officially banned all crypto mining, citing “excessive energy consumption.” It was a shocking reversal. Just months before, the same officials were touting mining as a lifeline for the economy. Now, they claimed it was draining the grid. But experts saw through it. The real issue wasn’t power - it was control. The government didn’t want miners making money outside its grasp.

The Paradox: Legal, But Not Functional

Here’s the weird part: crypto mining is still technically legal in Venezuela. The laws haven’t been repealed. SUNACRIP was reorganized in March 2024, and a new body called CAVEMCRIP - with private sector input - was created to oversee operations again. But no one trusts it.

The agency still doesn’t have enough staff. The NMP still doesn’t work reliably. The registry system still takes months to process. And the electricity? Still unreliable.

Meanwhile, ordinary Venezuelans keep using crypto - not because the government wants them to, but because they have to. With inflation still over 100% in 2025, 70% of households now use stablecoins like USDT to buy food, pay rent, and send money to family abroad. The government’s own Conexus platform handles 40% of all electronic payments and is building a blockchain-based interbank network to let banks offer Bitcoin and stablecoin services by December 2025.

So here’s the contradiction: the state tries to control mining, but people use crypto anyway - just not through the official channels. The government wants to own the mining, but the people own the usage.

A bank teller hands a digital wallet to a customer while a mural of a dam reveals Bitcoin flowing like water.

The Future: Will Banks Save It?

The most surprising development isn’t in the mining centers. It’s in the banks.

By the end of 2025, Venezuela plans to let commercial banks directly custody, transfer, and exchange Bitcoin and stablecoins. This would make it the first country in the world to fully integrate crypto into its banking system. But will it work? Probably not - not as long as SUNACRIP remains broken.

Analysts from Baker McKenzie say the crypto sector won’t stabilize until the government changes. And with Maduro’s administration facing international sanctions, criminal investigations, and domestic unrest, that change isn’t coming soon.

Right now, Venezuela’s state-controlled mining model is a ghost. The laws are still there. The infrastructure is half-dead. The regulators are silent. And the miners? They’re either gone, or they’re mining underground - outside the system, outside the law, and outside the government’s reach.

What This Means for Anyone Trying to Mine in Venezuela

If you’re thinking about starting a mining operation in Venezuela:

Don’t count on SUNACRIP to help you. It’s not functional.
Don’t trust the National Mining Pool. It’s unreliable and slow.
Don’t assume cheap electricity means low costs. Power outages and backup generators will eat your profits.
Don’t expect legal protection. The rules change without notice.

The only people still mining are those who don’t care about the law - or those who have no other choice.

Is crypto mining legal in Venezuela in 2026?

Yes, technically. The legal framework still exists, and mining isn’t outright banned. But the main regulatory agency, SUNACRIP, has been paralyzed since 2023. While licenses are still required, they’re rarely issued or enforced. The government’s official stance is inconsistent - banning mining one month, then allowing it again the next. In practice, mining exists in a legal gray zone.

What is SUNACRIP and why does it matter?

SUNACRIP, or the National Superintendence of Cryptocurrencies, was Venezuela’s official crypto regulator, created in 2019 to control all mining and crypto transactions. It required miners to register, enforced energy use rules, and managed the National Mining Pool. But after a corruption scandal in 2023, SUNACRIP stopped operating. It was briefly restructured in 2024 under CAVEMCRIP, but it still lacks staff, funding, and credibility. Today, it’s more of a symbol than a functioning agency.

Can I still mine crypto in Venezuela without a license?

Yes - and many people do. While the law requires licensing, enforcement is nearly nonexistent. Most miners now operate independently, using private power sources and avoiding SUNACRIP entirely. The government has no way to track or stop them. The real risk isn’t getting caught - it’s losing money to power outages, equipment failure, or scams.

Why does Venezuela have cheap electricity for mining?

Venezuela has massive hydroelectric dams, especially the Guri Dam, which supplies most of the country’s power. The government heavily subsidizes electricity - so much so that mining operations pay as little as $0.03 per kWh. But subsidies don’t mean reliability. The grid is crumbling, with frequent blackouts. Many miners now rely on diesel generators, which cost more than the electricity they’re trying to save.

What’s the future of crypto in Venezuela?

The government plans to let banks offer Bitcoin and stablecoin services by December 2025, which could make Venezuela the first country to fully integrate crypto into its banking system. But without a functioning regulator, stable power, and political stability, this plan is unlikely to succeed. Meanwhile, everyday Venezuelans are already using crypto - not because the state supports it, but because they have no other way to survive.

17 Comments

Sanchita Nahar
February 10, 2026 AT 19:22

This whole thing is a mess. Why even try? The government can't even keep the lights on but they want to control crypto? LOL.
Donna Patters
February 11, 2026 AT 05:41

The institutional incompetence on display here is not merely tragic-it is emblematic of a state that confuses control with governance. SUNACRIP was never a regulatory body; it was a performative farce, a theatrical prop in the theater of the absurd. The notion that state-owned mining pools could function in an environment of chronic infrastructure collapse is not naive-it is ontologically indefensible.
Ben Pintilie
February 11, 2026 AT 11:05

LMAO the government bans mining then says it's 'technically legal' 😂
Michelle Cochran
February 12, 2026 AT 03:42

It’s not about energy. It’s about power. The state doesn’t want people to have autonomy. Crypto isn’t just money-it’s freedom. And freedom terrifies them. They’d rather let the grid burn than let citizens hold something they can’t control. This isn’t economic policy. It’s psychological warfare.
Peggi shabaaz
February 13, 2026 AT 20:58

i feel like the real story here is how people just keep going anyway. they dont need the government to mine. they just do it. with generators. with wifi. with hope. its wild how resilient people are when the system fails
Sakshi Arora
February 15, 2026 AT 20:19

so if the grid is down 40 hours a month and you need a diesel gen to mine then isnt the real cost like 0.20 per kwh not 0.03? why is everyone pretending the subsidy still matters
bala murali
February 17, 2026 AT 09:58

The structural dissonance between formal regulatory architecture and operational reality in Venezuela’s crypto ecosystem reflects a broader pathological condition in post-sovereign governance models. The institutional simulacrum of SUNACRIP-while legally persistent-operates as a non-functional artifact, bereft of epistemic authority and materially disconnected from the emergent decentralized practices of its citizenry.
Ekaterina Sergeevna
February 17, 2026 AT 14:54

Ah yes, the classic ‘we’re not banning it, we’re just not enforcing it’ move. So elegant. So sophisticated. So… Soviet. I’m sure the IMF is drafting a white paper on this right now. ‘How to Destroy an Economy with Bureaucratic Theater.’
Grace Mugambi
February 17, 2026 AT 15:11

There’s something deeply human here. Even when the state tries to own everything, people find a way to keep their own economy alive. Crypto isn’t about technology-it’s about dignity. The miners aren’t rebels. They’re just trying to feed their families. The government’s policy isn’t wrong because it’s bad economics. It’s wrong because it misunderstands what people need.
Crystal McCoun
February 18, 2026 AT 07:31

Important note: The National Mining Pool’s unreliability isn’t just a technical flaw-it’s a systemic failure of trust. When users report 15–20% of earnings being lost due to ‘glitches,’ this isn’t incompetence. This is intentional opacity. The system is designed to frustrate compliance, not facilitate it. Any miner who registers is essentially donating their labor to a black box.
Elijah Young
February 19, 2026 AT 09:35

The fact that banks are being allowed to custody Bitcoin by end of 2025 is the most plausible path forward. If the state can’t manage mining, maybe letting financial institutions handle it through regulated channels is the only way this doesn’t collapse into complete chaos. But even then, without rule of law, it’s just gambling with a government stamp on it.
Beth Trittschuh
February 20, 2026 AT 00:39

this is why i love crypto 🌱✨ the system breaks... and people just rebuild it anyway. no permission needed. no license required. just code, power, and will. venezuela’s government is trying to build a castle in a hurricane. the people? they’re just lighting candles.
Andrea Atzori
February 21, 2026 AT 17:30

The paradox is not that the state controls mining-it’s that it claims to control something it has no capacity to monitor. The blockchain is inherently transparent. Yet the government lacks the technical infrastructure to track even basic transactions. This is not regulation. It is symbolic aggression. A performance of authority without substance.
Joe Osowski
February 23, 2026 AT 02:37

Venezuela? They can't even fix their water supply. Now they want to run a global crypto network? This isn’t innovation. This is delusion. And anyone who thinks this is going to work is either a fool or a liar. The U.S. doesn’t need this. We have real markets. We don’t need your broken grid and your fake Petro.
Gaurav Mathur
February 24, 2026 AT 07:24

this is all a distraction. the real goal is to track every single transaction. they dont care about mining. they care about surveillance. the whole thing is a honeypot. every rig you plug in is a data point. every payout is a name. they want to know who has crypto. then they can take it. its not about money. its about control. dont be fooled.
Jeremy Lim
February 25, 2026 AT 11:58

I mean... I get it. The grid is a disaster. The bureaucracy is a joke. But still... 0.03/kWh? That’s like free money. I’d move there tomorrow if I could. Just set up a rig in a garage. Wait for the next blackout. Then mine while everyone else is sitting in the dark. 😎
kelvin joseph-kanyin
February 25, 2026 AT 20:14

Venezuela is proof that crypto doesn’t need permission to thrive 🚀💥 People don’t wait for governments to catch up. They just build. And when the lights go out? They turn on the generator. And keep mining. That’s the real revolution.