Venezuela is about to achieve a historical milestone by becoming the first country with an official national crypto mining pool, but it is actually a dystopian situation rather than a good thing, since it will be illegal for miners to use any other pool besides the national pool.
Essentially, up until now mining in Venezuela was borderline illegal, and mining rigs were often seized, and this is Venezuela’s way of legalizing the crypto mining industry. It seems the reason Venezuela decided to ‘legalize’ mining and launch the national pool is so that they can reap significant fees from all of the mining activity in Venezuela, which will over time swell the crypto holdings of the Venezuelan government.
Regulations will be quite tight in order to ensure that every last Satoshi mined in Venezuela will pass through the hands of the government, including all miners need to register for a license, and constantly supply the government with all of the information about their mining farm and the daily revenues. Also, certainly internet activity will be monitored nationwide to catch any rogue miners.
Beyond the national pool, the Venezuelan government is taking over the mining rig manufacturing industry as well, and all rig imports and exports will be controlled by the government.
Unfortunately, miners in Venezuela will be subject to the government’s whims since all the mined money will be controlled by the government, and miners could end up having their mining revenues delayed or seized.
Thus, Venezuela has managed to transform the mining industry, which used to be a haven of decentralization and freedom, into a communist nightmare. It remains to be seen how the national mining pool will work out, and certainly crazy stories can be expected out of Venezuela in the coming months regarding this pool, since Venezuela has a long history of seizing citizen’s money.