Paraguay’s new law imposes severe penalties on crypto miners for electricity theft, reflecting the government’s crackdown on illegal mining operations.
Points
- Paraguay’s Senate passed a law imposing up to 10 years of jail time for electricity theft by crypto miners.
- The legislation aims to curb illegal mining operations and ensure fair use of the country’s electrical infrastructure.
- Some members of the Senate criticized the law, suggesting it could cover up corrupt activities by officials.
- Legal mining operators face increased power fees, prompting some to consider relocating to neighboring countries.
The Paraguayan Senate has approved a stringent law targeting electricity theft by crypto miners, with penalties of up to 10 years of jail time. This move is part of the government’s broader effort to regulate the cryptocurrency mining sector and curb illegal operations.
The new legislation has faced opposition from some Senate members. Senator Yolanda Paredes criticized the reforms, suggesting that they could cover up corrupt activities by officials of the National Electricity Administration （ANDE）. Allegations have surfaced that ANDE officials accepted bribes to allow illegal bitcoin mining farms to operate, reportedly collecting up to $500,000 to keep these farms running.
Amid these legal and regulatory challenges, ANDE has also raised power fees for cryptocurrency mining by up to 14%. This increase has prompted some legal mining operators to consider relocating to neighboring countries like Argentina, adding to the tensions between the government and the crypto mining community in Paraguay.
解説
- Regulatory Crackdown: The new law reflects Paraguay’s aggressive stance on regulating the cryptocurrency mining sector and ensuring the fair use of electrical infrastructure.
- Corruption Concerns: Allegations of corruption among ANDE officials highlight the complexities and challenges in enforcing regulatory measures.
- Economic Impact: Increased power fees and stringent penalties may drive legal mining operators out of the country, affecting Paraguay’s position in the global crypto mining industry.
- Regional Dynamics: The potential relocation of miners to neighboring countries underscores the regional implications of Paraguay’s regulatory policies on cryptocurrency mining.