Key Facts.

  • Venezuela TSJ supports SUNACRIP seizure of mining equipment.
  • Mining bitcoin in Venezuela is not illegal, but it is an activity with certain restrictions.

Venezuela's highest judicial entity, the Supreme Court of Justice (TSJ), this week removed court protection from a Bitcoin (BTC) backed mining company whose equipment had been confiscated by the National Regulatory Authority for Cryptocurrency Activities (SUNACRIP). .

According to CriptoNoticias, the highest judicial entity of Venezuela, in a sentence posted on its website, revoked the ruling of the First National Administrative Court of Disputes of the Capital Region, which ruled against SUNACRIP in November.

The decision comes after SUNACRIP inspected two bitcoin mining sites under a law and confiscated equipment available there, claiming that the activities were not registered as required by law.

This is the case with Sierramoros CA, which claims to be the owner of the miner and must return it as ordered by the court.

But the TSJ's ruling changed that. Curiously, in order to rule on the case, the agency granted a request for appointment by SUNACRIP attorneys, which allowed it to hear the case in the lower court. This is what led to the reversal and annulment of the decree by the Metropolitan Court.

For the TSJ, the court's decision could "undermine the general public interest", especially since it intends to return the miners without completing the registration and enrollment process. Thus, they said, the court "avoided the basic principles of a procedural body that takes precautionary measures," such as seizing miners.

According to TSJ, sending the miners back to Sierramoros is "a sentence that seriously undermines the public interest and outweighs the interests of the parties involved, as the potential to threaten the stability of the country is obvious.

Bitcoin Mining Mining bitcoin in Venezuela is not illegal, but it does come with certain restrictions. / Source: Bitcoin Paraguay. Bitcoin Miners Must Register to Avoid Penalties

The decision of the TSJ reaffirms that SUNACRIP is the sole regulatory body for cryptocurrency issues in Venezuela and that, by law, it has the authority to supervise, control and authorize everything related to the generation and commercialization of cryptocurrencies in that country.

In the case of Bitcoin miners, in addition to having to be part of the Registry of Integrated Services for Cryptocurrencies (RISEC), they must also comply with the requirements and precautions established in the Registry of Integrated Miners (RIM). These are the previous steps to access the license that allows them to mine from the Creole territory.

If they do not do so, but operate without registration, SUNACRIP can confiscate the digital mining equipment under the constituent decree of the Integrated Cryptocurrency Activity System, charging them with non-compliance with the law.

José Ángel Álvarez, President of the National Association of Cryptocurrencies (ASONACRIP), supported this.

Álvarez told CriptoNoticias: "The TSJ ruling sends a clear and unambiguous signal that any company or individual who wants to participate in activities regulated by the state must comply with the law."

A Clearer Legal Framework for Bitcoin Mining

Through the ruling, the judiciary joined hands with the Political Administrative Tribunal to fully support the actions of SUNACRIP, even if it is related to the confiscation of mining equipment.

In addition, it clearly states that to mine in Venezuela, you must register and meet the requirements in advance to avoid sanctions.

Supreme Court of Venezuela Venezuela TSJ Supports SUNACRIP Seizure of Unregistered Mining Devices. / Source: Latest News.

It is good to clarify that bitcoin mining is not illegal in Venezuela, but it is an activity with certain restrictions, such as those mentioned above.

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That's why some miners start operating without registering. The idea that mining is an activity that could generate profits in Venezuela attracted them despite the failure of public services, such as the eventual lack of electricity or Internet.

Finally, the TSJ ruling clearly conveys the message that governments will always want to maintain control over activities that are inherently decentralized, although in cases like Venezuela, they first show themselves to be ecosystem friendly.