The Paraguayan government is pushing for a law that could see unauthorised Bitcoin miners facing imprisonment for up to a decade. The bill, submitted urgently to parliament, aims to penalise illegal miners with lengthy jail terms and authorise law enforcement to confiscate mining equipment. Government officials highlight the need to safeguard the state-owned National Electricity Administration (ANDE) from energy theft caused by unauthorised Bitcoin mining operations. The proposed legislation would empower courts to impose maximum sentences of ten years for energy theft offences, while allowing ANDE to seize and sell confiscated mining rigs for its benefit.
El gobierno Paraguayo sigue dando batalla a los mineros ilegales de bitcoin que roban energía eléctrica. Hoy, el Poder Ejecutivo, a través de la vocera presidencial Paula Carro, anunció que enviará al Congreso dos proyectos de ley para incautar equipos y establecer penas de hasta… pic.twitter.com/Tbt7MVKby7
— Joaquin Morinigo 🇵🇾🏴☠️⚡️ (@criptoboi) May 17, 2024
Paraguay’s attraction for Bitcoin mining, owing to its abundant hydroelectric energy, has led to a surge in illegal mining activities, straining power resources and prompting police crackdowns. Since the beginning of the year, authorities have confiscated over 5,000 ASIC miners in various raids on illegal mining farms. This enforcement action has spurred parliamentary discussions, with some lawmakers advocating for a temporary ban on Bitcoin mining until the issue of illegal operations is resolved. However, the fate of this proposed ban remains uncertain as it has not progressed past the committee stage.
