The government of Paraguay is taking a strong stance against illegal Bitcoin mining activities in the country. With the proposed bill that seeks to jail illegal miners for up to 10 years, Paraguay aims to protect its state-owned National Electricity Administration (ANDE) from the threat posed by energy theft.
Bitcoin mining has experienced significant growth in Paraguay due to the abundance of surplus hydroelectric energy. However, the increase in illegal connections to power grids has led to overloads and other issues for power providers. This has prompted the police to launch crackdowns, resulting in the seizure of thousands of mining rigs.
The government’s bill, supported by the Public Ministry, ANDE, and the Paraguayan Judiciary, aims to impose harsh penalties on illegal miners. The bill allows for the seizure of mining equipment and the sale of these assets, with the proceeds benefiting the state-run firm ANDE. This approach is crucial in combating the millions of dollars in losses suffered by power providers due to illegal mining activities.
Parliamentary Debate
The proposed bill by the government has sparked debates in parliament, with lawmakers divided on the issue. While some support the bill’s measures to tackle illegal mining, others have proposed a temporary ban on Bitcoin mining until the problem is resolved. However, the fate of this private member’s bill remains uncertain, as it has not yet progressed past the committee phase.
The fight against illegal Bitcoin mining in Paraguay is intensifying, with the government’s bill aiming to serve as a deterrent to would-be offenders. By cracking down on illegal miners and seizing their equipment, Paraguay seeks to safeguard its energy resources and protect the interests of its state-owned electricity administration. Only time will tell how effective these measures will be in curbing illegal mining activities and ensuring the stability of the country’s power grid.