Lawmakers in Paraguay Call for Temporary Ban on Bitcoin Mining
A group of lawmakers in Paraguay have recently proposed a temporary ban on Bitcoin mining in the country. The senators argue that crypto mining operations are causing disruptions to the national power supply system. Let’s delve into the details of this proposed legislation and its potential impact on the crypto mining industry in Paraguay.
The Proposal for Temporarily Prohibiting Bitcoin Mining
- Fourteen Paraguayan senators introduced a bill on April 4 calling for a temporary ban on the creation, storage, and mining of cryptocurrencies in Paraguay.
- The lawmakers raised concerns about crypto miners exploiting the nation’s low power tariffs, taking advantage of Paraguay’s abundant hydroelectric energy resources.
- The government had previously attempted to regulate crypto mining through a bill that was approved by the Senate in July 2022 but was ultimately vetoed by the president in August of the same year.
- The proposed ban would last for 180 days or until a comprehensive regulatory framework for crypto mining is established in the country.
Electricity Thefts Linked to Crypto Mining Operations
Until February, Paraguay’s Alto Paraná region had reported nearly 50 cases of electricity theft related to illegal Bitcoin mining activities. These unauthorized crypto mining operations have resulted in significant financial losses for Paraguay’s National Electricity Administration (ANDE).
- Each underground crypto farm is estimated to cause damages worth 500 to 700 million guaranÃes per month to ANDE.
- Approximately 50 illegal crypto facilities were identified in Paraguay by February 2024, highlighting the scale of the issue.
- The senators emphasized that these clandestine mining operations could lead to multimillion-dollar losses for ANDE if left unchecked.
By
By
By