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

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.

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.

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.