Venezuela cryptocurrency chief issues warning to miners

Venezuela's cryptocurrency chief acknowledged that illegal acts had been committed against virtual currency miners by certain "unscrupulous" state officials.

In an interview with state broadcaster VTV, Carlos Vargas (pictured) said a few civil servants had illegally seized equipment, citing acts of extortion.

Vargas, who said officials had been ordered to temporarily stop seizing hardware and that currency miners could file complaints via social media, said miners had until January 21 to register with the government via the platform Observatorio BlockchainVE.

"Those who decide to remain anonymous run the risk of facing the consequences of their actions," Vargas said.

Vargas underlined that cryptocurrency mining - the process by which transactions are verified and added to the blockchain ledger, releasing the new virtual currency - was not an illegal activity.

On January 14, during a national cryptocurrency mining event, authorities will release details on the government's own cryptocurrency, the Petro.

President Nicolás Maduro has said the Petro would be anchored by 5.3Bb of crude from the onshore Ayacucho field, as well as gold and mining deposits.

The hardware employed in mining uses a lot of electricity - which is heavily subsidized in Venezuela - and state authorities have accused virtual currency miners of electricity theft.

Vargas said the low price of electricity in Venezuela gives miners a competitive advantage.