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Paraguayan Lawmakers Call for Temporary Ban on Bitcoin Mining
A group of lawmakers in Paraguay have proposed a temporary ban on Bitcoin mining, citing disruptions to the nation’s power supply.
Details of the Bill
- Introduced on April 4, the bill calls for the temporary prohibition of creating, storing, and mining cryptocurrencies in Paraguay.
- Fourteen senators are behind the bill, aiming to halt crypto mining farms in the territory.
- The lawmakers argue that miners exploit the country’s low power tariffs, leading to a significant increase in crypto mining activities.
Government’s Response
The government of Paraguay is taking steps to crack down on illegal Bitcoin mining operations, following a previous unsuccessful attempt to regulate the industry.
The proposed ban would be in effect for 180 days or until a proper regulatory framework is established.
The ban aims to ensure that Paraguay’s National Electricity Administration can support crypto mining’s energy needs without compromising the overall power grid.
Electricity Thefts and Losses
Recent reports link theft of electrical energy to Bitcoin mining activities in Paraguay, particularly in the Alto Paraná region.
ANDE estimates significant monthly losses due to clandestine cryptocurrency farms, with each operation causing damages worth millions of guaraníes.
Over 50 illegal crypto premises were uncovered by February 2024, posing a substantial financial risk to the state-owned company.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
