Paraguay's proposal to imprison illegal Bitcoin miners for up to 10 years

Paraguay's government is urging lawmakers to pass a bill that could impose prison sentences of up to 10 years on illegal bitcoin (btc) miners. Earlier this month, presidential spokesperson Paula Carro announced that the bill had been sent to parliament as a matter of urgency.

Strong penalties for illegal bitcoin miners

Carro explained that the legislative proposal aims to “punish” illegal mining activities with significant prison sentences. According to Criptonoticias, the bill also authorizes Paraguayan police and prosecutors to confiscate mining equipment from unauthorized operators. The legislation is designed to protect the state-run National Electricity Administration (ANDE), which has been severely affected by the theft of large amounts of energy by illegal bitcoin mining operations.

The bill stipulates that courts could impose a maximum sentence of 10 years in prison for those found guilty of energy theft. Additionally, it allows ANDE to request the seizure of mining platforms, which can then be sold with the proceeds benefiting the state electricity provider.

Growing bitcoin mining activity in Paraguay

bitcoin mining has seen significant growth in Paraguay due to the country's abundant hydroelectric energy resources. These resources make it an attractive place for btc miners. Despite lawmakers' efforts to regulate the industry, many miners have established illegal connections with electrical networkscausing overloads and other problems for electricity providers.

In response, law enforcement agencies have stepped up efforts to combat illegal mining activities. Since the beginning of the year, police have seized more than 5,000 ASIC miners in several raids across the country.

Government crackdown on illegal mining

ANDE has actively participated in 17 raids against illegal bitcoin and altcoin mining operations since early 2024. This crackdown has spurred legislative action, with at least 14 lawmakers supporting a private member's bill seeking to temporarily ban bitcoin mining. bitcoin until the issue of illegal mining is resolved. The operations are resolved. However, this bill has not yet passed the committee stage and may not come to a vote in the legislature.

If the government's bill passes, the private member's bill is likely to be thrown out. Carro pointed out that the Government's bill has the support of the Public Ministry, ANDE and the Paraguayan Judiciary. He emphasized that illegal bitcoin mining has resulted in millions of dollars in losses for Paraguay's energy providers.

Legislative and judicial support

The Paraguayan government is pushing for swift legislative action to address the challenges posed by illegal bitcoin mining. The proposed bill reflects a coordinated effort among various government entities to mitigate the impact of unauthorized mining on the national electrical grid and ensure the sustainability of the country's electrical resources.

The Paraguayan government continues to battle illegal bitcoin miners who steal electricity. Today, the Executive Branch, through presidential spokesperson Paula Carro, announced that it will send to Congress two bills to seize equipment and establish penalties of up to… pic.twitter.com/Tbt7MVKby7

— Joaquín Morínigo (@cryptoboi) twitter.com/criptoboi/status/1791515255572709442?ref_src=twsrc%5Etfw”>May 17, 2024

Paraguay's new cryptographic legislation

As we also reported, Paraguayan legislators recently met to vote on a bill related to cryptoassets. During this session, the bill received overwhelming support, with 40 deputies voting in favor and only 12 against. The new law focuses on giving regulators the necessary authority to supervise companies that offer crypto services. These regulators will be responsible for issuing licenses, monitoring the activities of these companies and ensuring that they comply with established regulations.

Despite its crackdown on illegal mining, one of the main motivations behind Paraguay's move towards cryptocurrency regulation is its desire to maintain its status as a hub for foreign miners. This attractiveness is largely due to the country's low electricity rates, which have been the lowest in the region in the last five years. By establishing a regulatory framework, Paraguay seeks to attract and retain these mining operations.

The proposed bill outlines requirements for new and existing industrial miners who wish to operate within the country. These miners will need to obtain permits and approvals before beginning operations. Additionally, the bill targets individuals and companies seeking to facilitate crypto services, ensuring that all market players meet the same standards.

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