Paraguayan Lawmakers Introduce Bill to Temporarily Pull the Plug on Bitcoin Mining OperationsA group of Paraguayan lawmakers is spearheading a bill that seeks to enact a temporary ban on cryptocurrency mining operations in Paraguay for 180 days or until the industry’s activities are properly regulated. The bill alleges that 28% of the energy losses of the National Power Administration (ANDE) correspond, in part, to illegal bitcoin mining connections.Paraguayan Bill Seeks To Enact Temp Ban On Crypto Mining OperationsParaguay is shifting its view on cryptocurrency and cryptocurrency mining. A group of Paraguayan lawmakers introduced a bill that seeks to temporarily ban cryptocurrency mining operations in the country due to its intensive use of electric energy.
The bill, introduced to the National Congress on April 3, proposes enacting a 180-day ban on the operation and installation of cryptocurrency mining farms and other operations involving cryptocurrency assets. This ban could be extended until a law that regulates these activities is enacted.
In the first article, the document details the activities falling under its scope. It states:
The creation, conservation, storage and commercialization of virtual assets or crypto assets, cryptocurrencies and the installation of crypto mining farms in Paraguayan territory are temporarily prohibited.
Illegal cryptocurrency mining operations have originated significant economic losses for the National Power Administration (ANDE). According to the bill, only in the department of Alto Parana, these operations could cause losses of $60 million in 2024. Lawmakers have also linked recent energy blackouts to illegal cryptocurrency mining operations, which impact the lives of Paraguayans.
The suspension of cryptocurrency mining activities would guarantee fair access to power for all Paraguayans, allowing the country to adequate its grid to manage this intensive power draw. The bill argues that suspending this activity until “an adequate power supply can be guaranteed and can handle this additional demand without interruptions in service to other users” is the decision to make.
If the bill is passed, legal miners in the country will face an uncertain destiny. Joaquin Morinigo, founder and CEO of crypto consulting company Cryptopy, revealed that formal mining operators had paid the ANDE over $30 million to guarantee the power delivery to 5 unnamed sites. Worried about the outcome, he declared:
If the law is approved, what will happen to contracts and guarantees? Does ANDE have the capacity to return the millions of USD in guarantee? What will happen to the employees of mining companies that operate legally?
Global bitcoin mining companies like Bitfarms and Pow.re have reported having commenced construction of data centers in Paraguay. If the bill gets passed, these operations could be affected.
In March, ANDE, the Supreme Court, and the Department of Justice convened on a joint framework to deal with power theft linked to illegal cryptocurrency mining.
Source: https://news.bitcoin.com/paraguayan-lawmakers-introduce-bill-to-temporarily-pull-the-plug-on-bitcoin-mining-operations/
