Coinspeaker
Paraguay Matches Venezuela’s Landmark Crackdown on Illegal Crypto Mining, Fueling Controversy
Paraguay authorities have continued their fight against illegal crypto mining in the country. So far this year, the South American country has been able to stop the operations of more than 10,000 ASIC mining rigs.
Ongoing Raids and Seizures of Mining Rigs
It was revealed in the latest crackdown that the Prosecutor’s Office in Ciudad del Este ordered the seizure of 450 ASIC rigs. These mining equipment were found in a warehouse in the Hernandarias district of Alto Paraná. The Administración Nacional de Electricidad (ANDE) noted that the warehouse is a storage site for equipment and materials related to cryptocurrency mining farms.
The operation was somewhat similar to a failed raid in the same area as it appears that perpetrators were somehow informed ahead, which led them to clear the illegal mining farm before the arrival of the authorities.
Paraguay’s national electricity administration has conducted over 70 raids on places suspected of executing illegal mining activities, making the country a leader in the fight against unauthorized cryptocurrency mining. With this latest crackdown, the South American country is now at par with Venezuela’s record of over 10,000 ASIC miners seized this year.
The Paraguay authorities have received 20 criminal complaints of illegal mining in Hernandarias, increasing the number of illicit operations.
Paraguayan Government’s Strict Regulations and Tariff Hikes
The South American country has long been a top choice for bitcoin miners. Some even travel to the country to enjoy its surplus hydroelectric power energy, from the Itaipú dam. However, the Paraguay government has taken a new stance on illegal mining, setting a new rule to combat such unlawful activity.
Anyone caught in the act will have to face a ten-year sentence. Amid this regulation, ANDE has also increased the electricity rates for special customers, which includes legal mining operations, to up to 16%.
Industry Concerns and Potential Economic Implications
Amid the ongoing crackdown, mining supporters believe that allowing crypto mining could be very advantageous to the country’s economy. However, the country gives away its surplus energy or sells it at a low rate to nearby countries.
Due to the heavy crackdown on the crypto mining space, top players within the industry have expressed their displeasure at the energy tariff rates, stating that it could end the sector. They further said that it could affect Paraguay’s position in the international business community, and also result in the loss of jobs for many people, and cost the country $1.5 billion.
The government’s new strict rules have caused a lot of confusion for crypto-mining businesses in Paraguay. Over 50 mining companies are planning to move to other countries, like nearby Argentina, to stay in business. The Paraguayan government’s conflicting policies have made people worried about the future of the country’s promising Bitcoin mining industry.
Paraguay Matches Venezuela’s Landmark Crackdown on Illegal Crypto Mining, Fueling Controversy
