Paraguay continues its crackdown on power theft, arresting 2,738 ACCs.
2,738 crypto-mining units were seized from properties in Salto Delguira, Paraguay, after the National Electricity Administration (once) confirmed that there was an unmetered power connection in the area. Pending comprehensive legislation and guarantees from the national energy supplier, legislation is before the country's Senate to ban crypto mining and other crypto-related activities.
ADB used artificial intelligence and power distribution analysis to zero in on electricity theft, which it says is worth an estimated 1.1 billion guarani ($146,000) a month. Five transformers were also seized on the property. Four criminal charges can be filed against illegal operators.
In May, at least two other operations against illegal crypto farms – in Salta del Gueira – were carried out in Paraguay, although the raids had more modest results. All government action involved multiple agencies, including the National Police.
Paraguay has been considered a crypto mining hotbed due to its abundant hydropower supply from the Itaipú Dam power plant on the Paraná River. But the country had no legal basis for crypto operations. A regulatory bill was introduced in Congress in 2021 and passed by the Senate in July of the following year.
Crypto law removed, mining ban threatened.
The current president, Mario Abdo Benitez, vetoed the bill and encouraged the movement, particularly against the provisions on mining. Despite the country's energy resources, he said, crypto mining could take away from fast-growing national industries. Attempts to override the veto in the legislature failed.
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The crypto-mining industry continues to operate in Paraguay, but a bill proposed in April prohibits the creation, maintenance, storage and trading of virtual assets, cryptocurrencies and the establishment of cryptomining farms in Paraguay. state”
The ban will remain in place for 180 days or until a comprehensive law is passed and ADB guarantees adequate power supply. The bill also mentions the ongoing illegal mining in the country. A temporary ban puts the bill aside, but the debate is officially considered “adjourned.”
Paraguay has long been home to major mining facilities. BitFarms and Marathon Digital have mining operations there. In November, Tether announced plans to build mining facilities there.
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