The Paraguayan government and judicial institutions are joining forces to combat illegal cryptocurrency mining, which is damaging the country’s power grid and causing considerable financial losses.
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Paraguay prepares to crack down on illegal crypto mining
The Paraguay prepares for a fight against illegal crypto mining operations on its territory.
During a meeting, the ANDE, the Supreme Court and the Ministry of Justice have established a partnership to effectively combat illegal mining operations. This collaboration will make it easier for the Ministry of Justice to deal with these cases, integrating various aspects linked to the persecution and punishment of those responsible for electricity theft.
The President of the Supreme Court, Luis María Benítez Riera assured that the country’s courts would resolve these cases diligently, while ensuring that legal procedures were respected. This strong political will is intended to send a clear message to offenders.
Since 2022, ANDE has issued several alerts on illegal crypto mining operations who were siphoning energy from the grid without paying the bills. Losses were estimated at $400,000 per month.
Faced with the scale of the problem and the government’s unfavorable attitude towards this activity, the authorities authorized tariff increases of up to 50% for minerscalling into question the economic viability of these operations.
A phenomenon with a heavy impact on the power grid
Since 2019, the Paraguayan justice system has received 60 complaints of energy theft related to crypto mining. 43 interventions were carried out, revealing the negative impact of these illegal practices on the quality of electrical service and the “serious material damage” caused to ANDE.
Despite this difficult context, Paraguay remains attractive to certain companies in the sector such as Bitfarms and Pow.re, which wish to establish their mining operations here. The country’s inexpensive, green hydroelectric power sources remain an undeniable asset.
The fight against illegal crypto mining has become a priority in Paraguay. The government and judicial institutions are determined to curb this phenomenon, which is seriously damaging the country’s power grid and finances. This large-scale mobilization, combined with stricter regulations, should help restore order and reassure legitimate businesses in the sector.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.
