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Paraguay Government’s Crackdown on Illegal Bitcoin Mining
The government of Paraguay is taking a firm stance against illegal Bitcoin mining activities in the country. The proposed bill aims to introduce strict penalties for those involved in unauthorized mining operations.
Proposed Penalties for Illegal Bitcoin Miners
- The bill suggests imprisonment for up to 10 years for illegal Bitcoin miners.
- Authorities can seize mining equipment from unauthorized operators.
- The legislation aims to protect the state-owned National Electricity Administration (ANDE) from energy theft.
Challenges Faced by Paraguay
Despite Paraguay’s abundant hydroelectric resources that attract Bitcoin miners, the rise in illegal connections to power grids has caused concerns among authorities and energy providers.
Recent Crackdown and Seizures
Since the beginning of the year, law enforcement agencies have confiscated over 5,000 ASIC miners in efforts to curb illegal mining activities. ANDE has conducted numerous raids on illegal mining farms across the country.
Legislative Response
A private member’s bill proposing a temporary ban on Bitcoin mining until the issue of illegal mining is resolved has gained support from some lawmakers. However, the government’s bill, backed by key institutions, is expected to take precedence.
Economic Impact
Illegal Bitcoin mining has led to significant financial losses for Paraguayan power providers, prompting the government to take decisive action to safeguard the country’s energy resources.
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.
