The Paraguayan government is ramping up its efforts to combat the growing issue of illegal bitcoin mining operations within its borders. In a bid to protect the state-owned National Electricity Administration (ANDE) from substantial financial losses due to energy theft, lawmakers are considering a bill that would impose severe penalties on those involved in unlawful mining activities.
Under the proposed legislation, individuals found guilty of illegal bitcoin mining could face up to 10 years in prison. Additionally, the bill grants Paraguayan law enforcement agencies the authority to seize and sell off mining equipment from illicit operations. This move aims to discourage the use of unauthorized mining rigs, which have been draining significant amounts of electricity from ANDE’s grid.
The crackdown on illegal mining operations comes as Paraguay grapples with the increasing demand for electricity from cryptocurrency miners. In an effort to curb the energy theft, authorities have already confiscated over 5,000 ASIC miners this year alone, highlighting the scale of the issue.
Alongside the proposed legislation, there is growing momentum within Paraguay’s government to potentially implement a temporary ban on Bitcoin mining altogether. This drastic measure is being considered as a means to alleviate the strain on the country’s energy resources and prevent further financial losses for ANDE.
As the global cryptocurrency landscape continues to evolve, nations are grappling with the challenge of balancing the potential benefits of digital assets with the need to maintain regulatory oversight and protect critical infrastructure. Paraguay’s robust response underscores the urgency with which governments are addressing the energy demands and potential risks associated with large-scale cryptocurrency mining operations.
