CryptoSphere by AsCurrency

CryptoSphere: cryptocurrency news, market analysis, blockchain trends and investments. Your essential guide to the digital economy

Crypto Mining Under Threat in Paraguay: Senators Propose Ban


Senators from Paraguay launched a bill to prohibit the creation, conservation, storage, and commercialization of virtual assets, as well as the installation of crypto mining farms.

On April 3, in the Senate of Paraguay, fourteen senators presented the proposal, including Colym Gregorio Soroka, Ever Federico, and Regina Lizarella.

Senators in Paraguay Want to Ban Crypto Mining

The senators argued that crypto miners “take advantage” of the country’s hydroelectric energy and have concentrated their activity in Alto Paraná.

“In [Alto Paraná], more than fifty premises dedicated to crypto-assets have been discovered until February 2024,” the senators stated in a translated version of the proposal.

These cases harmed the National Electricity Administration (ANDE). ANDE’s losses reach 700 million guaraníes monthly. Annually, this amounts to 420,000 million guaraníes, or about $60 million.

The initiative insists on “clandestine connections” in crypto mining farms. They emphasized that this activity steals 28% of energy consumption through irregular connections at the mining farms.

The senators propose a legal regulation of crypto mining, which integrates legal, financial, and security implications. This includes establishing a clear framework for energy consumption and prices, ensuring equity in access to energy and electrical infrastructure, and improving its environmental impact.

The actions would come into force after approval, although the initiative went to the Justice and Labor Legislation Commission.

The lack of well-defined regulations presents a serious concern, as ANDE’s recent actions exemplified. On April 4, ANDE intervened in a crypto mining facility in Ciudad del Este, Alto Paraná, where an “irregular connection” was found. ANDE’s action has been described as a direct confrontation against the illegal activity.

ANDE shut down a crypto mining facility in Alto Paraná, Paraguay. Source: Radio Itapiru
ANDE shut down a crypto mining facility in Alto Paraná, Paraguay. Source: Radio Itapiru

The simple installation caused monthly losses of 58 million guaraníes, and the activity is punishable by up to 3 years in prison.

Paraguay is an oasis for crypto mining despite its regulation. BeInCrypto reported that the famous Itaipu Dam on the Paraná River generates a staggering 14 gigawatts (GW) of electrical energy. That represents more than 99% of the country’s energy supply.

Additionally, the energy surplus has become the main attraction for Bitcoin miners. They find Paraguay a favorable place to establish their operations.

Top crypto platforms in the US | April 2024


Coinbase

Coinbase
Explore →

AlgosOne

AlgosOne
Explore →

Chain GPT

Chain GPT
Explore →

iTrustCapital

iTrustCapital
Explore →

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.


Conclusion

In conclusion, the senators in Paraguay have proposed a bill to ban crypto mining and the use of virtual assets in the country, citing concerns about the exploitation of hydroelectric energy and the negative impact on the National Electricity Administration (ANDE). The proposal aims to regulate crypto mining activities, establish clear frameworks for energy consumption and prices, ensure equitable access to energy resources, and address environmental concerns. Recent actions by ANDE, including the shutdown of a mining facility in Alto Paraná, highlight the need for stricter regulations in the crypto mining sector. Despite being an attractive location for miners due to its energy surplus, Paraguay is moving towards regulating and potentially banning crypto mining activities to address these issues.

  • bitcoinBitcoin (BTC) $ 65,160.00
  • ethereumEthereum (ETH) $ 3,399.90
  • bnbBNB (BNB) $ 579.94
  • solanaSolana (SOL) $ 136.00
  • xrpXRP (XRP) $ 0.493330
  • cardanoCardano (ADA) $ 0.371780
  • shiba-inuShiba Inu (SHIB) $ 0.000018
  • polkadotPolkadot (DOT) $ 5.83