The government of Paraguay is taking a firm stance against illegal Bitcoin miners by proposing a bill that could potentially jail offenders for up to 10 years. This bill, which has been sent to parliament urgently, aims to punish illegal miners with multiple years in prison. Additionally, the draft law would allow Paraguayan police and prosecutors to seize mining equipment from illegal operators. The primary goal of this bill is to protect the state-owned National Electricity Administration (ANDE) from the threat posed by the theft of large amounts of energy by illegal Bitcoin mining operators.
Bitcoin mining has seen a significant increase in Paraguay, primarily due to the country’s surplus hydroelectric energy. However, this boom in mining has led to illegal connections to grids, causing overloads and other issues for power providers. In response, the police have launched a crackdown on illegal mining operations. Since the beginning of the year, over 5,000 ASIC miners have been seized, and ANDE has participated in multiple raids on illegal mining farms nationwide. This has prompted lawmakers to take action to address the issue.
While the government bill proposes harsh penalties for illegal miners and has the backing of key institutions such as the Public Ministry, ANDE, and the Paraguayan Judiciary, a private member’s bill aims to temporarily ban Bitcoin mining until the issue of illegal mining is resolved. However, this bill has not yet progressed past the committee phase, and its fate remains uncertain. If the government’s bill is successful, it is likely that the private member’s bill will be put on hold.
According to Paula Carro, the presidential spokesperson, illegal Bitcoin mining has resulted in millions of dollars worth of losses for Paraguayan power providers. The proposed crackdown on illegal mining operations aims to protect the interests of ANDE and ensure that power resources are not being stolen for personal gain.
The government of Paraguay is taking significant steps to tackle the issue of illegal Bitcoin mining in the country. By proposing harsh penalties and cracking down on illegal operations, the government aims to protect both the state-owned electric company and power providers from financial losses. It remains to be seen how these proposed measures will be implemented and what impact they will have on the Bitcoin mining industry in Paraguay.
