Venezuela Bans Crypto Mining as Power Demand Hits 15,579 MW

- Government reinforces nationwide prohibition on cryptocurrency mining - Experts cite chronic infrastructure failures and sanctions as core issues On May 9, 2026, CoinDesk reported that Venezuela reaffirmed its ban on cryptocurrency mining amid escalating nationwide electricity shortages, as power demand surged to 15,579 megawatts, the highest level in nearly a decade. Government authorities maintain that large-scale mining operations are a major factor overloading the national power grid, and in response, officials have stepped up enforcement targeting illegal mining activities as the crisis worsens. Industry analysts and grid experts, however, challenge the government’s narrative. They highlight fundamental issues such as chronic underinvestment in infrastructure, mass emigration of skilled technicians, persistent mismanagement, and strict international sanctions as the real causes of Venezuela’s grid instability. According to these experts, these factors have left the electrical system in a severe state of deterioration, while the impact of cryptocurrency mining remains comparatively minor. Electricity rationing is now widespread across the country, and enforcement actions against crypto miners have intensified since early May. At the same time, systemic problems like long-standing unpaid utility bills, sustained equipment breakdowns, and a shrinking technical workforce continue to impede grid stability. Insiders stress that, although crypto mining does add some additional stress, it is symptomatic rather than causative of Venezuela’s deepening power crisis. As of 06:09 UTC on the same day, Bitcoin (BTC) is trading at $80,402.79, up 1.14% over the past 24 hours, according to CoinMarketCap.