Paraguay Government Seeks to Imprison Illegal Bitcoin Miners for Up to a Decade
The Paraguay government is pushing for a bill that would impose jail sentences of up to 10 years on illegal Bitcoin miners. Presidential spokesperson Paula Carro announced on May 17 that the bill has been urgently sent to parliament for approval.
Carro stated that the purpose of the bill is to punish illegal miners by sentencing them to multiple years in prison. Additionally, the proposed law would authorize the Paraguayan police and prosecutors to confiscate mining equipment from illegal operators.
According to Criptonoticias, Carro also emphasized that the bill aims to protect the state-owned National Electricity Administration (ANDE). She highlighted the threat posed by illegal Bitcoin mining operators who steal large amounts of energy, which is detrimental to ANDE’s operations.
Under the terms of the bill, courts would have the authority to impose a maximum sentence of 10 years in jail for the crime of energy theft. Furthermore, the bill grants ANDE the power to request the police to seize mining rigs and sell them, with the proceeds benefiting the state-run firm.
Bitcoin mining has experienced a significant boom in Paraguay, where efforts have been made to regulate and legalize the industry. The country’s abundance of hydroelectric energy makes it an attractive location for BTC miners. However, in recent years, many miners in Paraguay have resorted to illegal connections to power grids, which has caused issues such as power overloads.
In response, the police have launched a crackdown, resulting in the seizure of over 5,000 ASIC miners since the beginning of the year.
ANDE has actively participated in 17 raids on illegal BTC and altcoin mining farms across the country in 2024. This has spurred activity in parliament, with 14 lawmakers supporting a private member’s bill that would effectively ban Bitcoin mining until the issue of illegal mining is resolved.
However, this bill is still in the committee phase and its prospects for a vote in the house are uncertain. If the government’s bill is successful, it is likely that the private member’s bill will be put on hold.
Carro stated that the government’s bill has the support of the Public Ministry, ANDE, and the Paraguayan Judiciary. She concluded by emphasizing that illegal BTC mining has resulted in significant financial losses for Paraguayan power providers.
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