A property containing 2,738 cryptocurrency mining units was seized in Salto del Guerra, Paraguay, after the National Electricity Administration (ANDE) discovered an unmetered electricity connection in the area. A bill is before the country’s Senate to ban cryptocurrency mining and other cryptocurrency-related activities pending comprehensive legislation and guarantees from the national energy provider.
ANDE used artificial intelligence and energy distribution analytics to focus on electricity theft, estimated to be worth 1.1 billion guarani ($146,000) per month. Five transformers were also seized from the property. Four criminal charges could be brought against those responsible for the illegal operation.
At least two other operations against illegal cryptocurrency farms – including one in Salta del Guaira – were carried out in Paraguay in May, although the results of these raids were more modest. All government actions involved multiple agencies, including the national police.
Paraguay is considered a haven for cryptocurrency mining due to its abundant reserve of hydroelectric power from the Itaipu Dam power plant on the Paraná River. However, the country lacked a legal basis for cryptocurrency operations. Regulatory legislation was introduced in Congress in 2021 and passed by the Senate in July of the following year.
Cryptocurrency legislation and mining ban under threat
Then-President Mario Abdo Benítez vetoed the bill, specifically objecting to provisions related to mining, which stimulated this activity. He said that even with the country’s energy resources, cryptocurrency mining could harm the rapid development of domestic industries. An attempt to circumvent the veto failed in Parliament.
Related: Paraguay’s Proposed Ban on Bitcoin Mining Could Cost $200 Million a Year
The cryptocurrency mining industry continues to operate in Paraguay, but was threatened by a proposed bill in April that would impose a ban on “the creation, custody, storage and commercialization of virtual assets or cryptographic assets and cryptocurrencies as well as the installation of mining farms in Paraguay. Paraguay.” province.”
The ban will be in effect for 180 days or until comprehensive legislation is passed and ANDE can ensure adequate energy supplies. The bill refers to the prevalence of illegal mining in the country. The temporary ban bill has been shelved, but the discussion is officially considered “postponed.”
Paraguay is still home to significant mining facilities. Bitfarms and Marathon Digital have mining operations there. In November, Tether announced plans to build mining facilities there as well.
Magazine: Acid, Bitcoin mining and a bad trip to North Korea
