Paraguay declares war on illegal Bitcoin miners

The debate surrounding Bitcoin mining continues in Paraguay. Various members of parliament have submitted bills that support the mining industry on the one hand, but also temporarily restrict it on the other - Blocktrainer reported.

Specifically, the bill deals with the punishment of operators of illegal Bitcoin mining facilities that have illegally connected to the electricity grid of the state electricity administration (ANDE) and steal electricity for mining operations. The electricity theft is a huge burden for the energy company, explained Carro.

With the growth of the Bitcoin mining industry in Paraguay due to considerable, cheap energy resources, such incidents of electricity theft have ultimately also accumulated. According to Carro, the energy supplier has not only had to contend with financial losses as a result, but also with overloading of the power grid and other problems. For these reasons, the police have already confiscated more than 5,000 ASIC miners.

Now, in the future, a prison sentence of up to ten years could be imposed in cases of electricity theft for mining facilities. The draft law also allows the Paraguayan police and public prosecutor's office not only to confiscate the mining equipment of illegal operators, but also to sell it. The proceeds from the sale of the mining rigs are to go to the state energy company.

Parliament is to decide on this urgent matter in the near future.
Legal Bitcoin mining operators who obtain and pay for electricity in accordance with the regulations have nothing to fear, of course.