Paraguay Authorities Seize Thousands of Crypto Mining Units Amid Pending Mining Ban
Summary:
Paraguay's National Electricity Administration (ANDE) has confiscated 2,738 cryptocurrency mining units in Salto del Guairá after detecting an unauthorized power supply. A bill to ban crypto mining is currently under review in the country's parliamentary body. ANDE used artificial intelligence to discover the utility theft which costs an estimated 1.1 billion guarani ($146,000) a month. A possible ban on crypto-related activities is pending, as discussions continue amid calls for comprehensive legislation and stable power supply. Meanwhile, major crypto-mining facilities continue operations in the country.
A total of 2,738 cryptocurrency mining machines were confiscated in Salto del Guairá, Paraguay, following a discovery by the National Electricity Administration (ANDE) of an unauthorized electric connection on a property. The nation's parliament is currently reviewing a bill that seeks to outlaw cryptocurrency mining along with other crypto-related activities until solid regulatory guidelines are set and the power provider can guarantee sufficient electricity supply. Using artificial intelligence and power distribution examination, ANDE traced the electric theft, estimated to be costing around 1.1 billion guarani ($146,000) monthly. Along with the mining machines, five transformers on the property were also confiscated. The people behind the illegal operation could face up to four criminal charges.
In May, a couple of operations against illicit crypto farms - including one in Salta del Guairá - were conducted in Paraguay. However, their outcomes weren't as significant. Each government-led operation involved a number of agencies, one of which was the National Police.
Paraguay has been seen as a favourable location for crypto mining due to the abundant hydropower from the Itaipu Dam power plant on the Paraná River. Although the country has no established framework for cryptocurrency operations. A regulatory bill was presented to the Congress in 2021 which the Senate passed in July the next year. Despite this, then-president Mario Abdo Benítez vetoed the bill, being critical of the sections that promoted mining. He asserted that regardless of the country's power resources, crypto mining may deprive other burgeoning local sectors. Efforts to nullify the veto didn't succeed in the legislature.
The cryptocurrency mining industry in Paraguay keeps functioning, but a proposal in April threatens to ban the "formation, maintenance, storing and trade of virtual or crypto assets, and installation of crypto mining farms." This prohibition will last for 180 days or till the time the solid legislation is approved and ANDE confirms satisfactory power supply. This proposed bill points out the widespread illegal mining in the nation. Although the bill proposing the temporary ban has been put on hold, it is still officially listed as "deferred."
Yet, Paraguay still hosts many mining facilities. Companies like Bitfarms and Marathon Digital operate their mining facilities in the country. In November, Tether also revealed its plan to set up mining operations in Paraguay.
Published At
5/31/2024 11:05:25 PM
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