Property containing 2,738 cryptocurrency mining units has been seized in Salto del Guerra, Paraguay, after the National Electricity Administration (ANDE) discovered an unmetered power connection in the area. There is a bill before the country's Senate to ban cryptocurrency mining and other cryptocurrency-related activities pending comprehensive legislation and guarantees from the national energy supplier.
ANDE used artificial intelligence and energy distribution analysis to focus on the theft of electricity, which was estimated to be worth 1.1 billion Guarani ($146,000) per month. Five transformers were also seized from the property. Four criminal charges may be brought against those responsible for the illegal operation.
At least two other operations against illegal cryptocurrency farms – one in Salta del Guaira – were carried out in Paraguay in May, although the results of those 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 supply of hydroelectric power from the Itaipu Dam power plant located on the Paraná River. However, the country lacked a legal base for cryptocurrency operations. Regulatory legislation was introduced in Congress in 2021 and passed the Senate in July of the following year.
Cryptocurrency legislation, mining ban threatened
Then-President Mario Abdo Benítez vetoed the bill, specifically objecting to provisions related to mining, which spurred the activity. He said that even with the country's energy resources, cryptocurrency mining could detract from rapidly developing national industries. An attempt to override the veto failed in the legislature.
Related: Paraguay's Proposed Bitcoin Mining Ban Could Cost $200 Million Annually
The cryptocurrency mining industry continues to operate in Paraguay, but has been threatened by a proposed bill in April that would impose a ban on “the creation, custody, storage and marketing of virtual assets or crypto assets and cryptocurrencies and the installation of mining farms in Paraguay.” province.”
The ban will be in place for 180 days or until comprehensive legislation is passed and ANDE can ensure adequate energy supplies. The draft law refers to the prevalence of illegal mining in the country. The temporary ban bill has been sidelined, but discussion is officially considered “postponed.”
Paraguay remains home to major 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
