All companies involved in the extraction of cryptocurrency in the country will be required to obtain a license and report to the authorities. Failure to comply with the new rules can lead to fines.
A national mining pool will be created in Venezuela. Also, the government of the country has legalized cryptocurrency mining. The corresponding document was published by the Office of Cryptocurrency Assets and Related Activities (SUNACRIP), according to local publication CriptoNoticias.
Under the new law, all companies and individuals involved in mining will be required to apply for an appropriate license and be entered in the state register. This also applies to data centers and mining equipment manufacturers.
The licensed companies will have to provide the authorities with information about their activities and keep records of information for 10 years. At the same time, the mining of cryptocurrency is allowed only as part of the national mining pool. Work outside of it will be subject to fines.
In 2018, Venezuela released the oil-backed cryptocurrency El Petro, becoming the first country to have its own digital currency. However, the expediency of its application is controversial. For example, in December of the same year, the price of El Petro was increased 2.5 times by the decree of the country’s President Nicolas Maduro. And in February 2020, retailers stopped accepting payments at El Petro because the central bank made an exchange with the cryptocurrency at a multiple times undervalued rate.
On September 1, the Central Bank of Russia refused to launch the National Mining Pool (NMP) project to the Association of Developers and Users of Blockchain Technology (RACIB). The project provided for the possibility of collective mining of cryptocurrencies for the efficient use of electricity.
