A new decree in Venezuela officially made Bitcoin mining legal in the country. However, the regulation will enable authorities to monitor the BTC mining sector.
Bitcoin Mining Legal in Venezuela
The decree issued by Venezuelan’s National Superintendency of Crypto Assets and Related Activities (SUNACRIP) was implemented on Monday, according to a report by local news outlet CriptoNoticias on Tuesday (September 22, 2020). Miners willing to carry legal Bitcoin mining operations in the country will need to obtain a license from the regulatory body.
While the edict legalizes Bitcoin mining, the law gives SUNACRIP the power to monitor every activity of the sector. An excerpt from the report reads:
“The authorities will supervise both the creation and importation of mining equipment. Similarly, mining farms for Bitcoin and other cryptocurrencies will be able to operate with the support of the State, but only if they are inspected by SUNACRIP.”
Venezuela has seen an influx of Bitcoin miners into the region due to its cheap electricity. However, the government’s attempt to maintain a strong grip on the BTC mining industry could cripple the sector’s growth.
A registry known as the Comprehensive Registry of Miners (RIM) was also created by the Venezuelan authorities. The RIM will be used to process licenses for miners on the web, with crypto mining equipment manufacturers and mining farm builders receiving special licenses. There are no details about the cost of these licenses.
Another prerequisite for Bitcoin miners to operate smoothly in Venezuela is for them to compulsorily join the National Digital Mining Pool. Bitcoin miners who refuse to join the pool could face sanctions from the Venezuelan government. In addition, miners must keep a record of all mining activities for 10 years.
More Countries Regulate Bitcoin Mining
The regulation of the Bitcoin mining sector seems to be spreading across different jurisdictions. Iran is one of the countries heavily involved in the cryptocurrency mining sector. Back in 2019, Iran authorized the operation of Bitcoin mining activities in the country.
In May 2020, the Iranian government issued a licenseto Bitcoin mining company iMiner to officially function in the country. Prior to the license, the country offered tax exemptionsto Bitcoin miners provided they sent in their foreign earnings.
China’s attitude towards the Bitcoin mining sector has not been altogether welcoming. Although the country has the most Bitcoin miners, the government planned to ban the sector in April 2019 However, the decision took au-turn in November 2019.
As reported by BTCManager earlier in September, the Kazakhstan government, with 13 Bitcoin mining farms in the country, announced its intention to inject over $700 million into the sector.