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Senators from Paraguay launched a bill to prohibit the creation, conservation, storage, and commercialization of virtual assets, as well as the installation of crypto mining farms.
These cases harmed the National Electricity Administration (ANDE). ANDE’s losses reach 700 million guaranies monthly. Annually, this amounts to 420,000 million guaranies, or about $60 million.
The initiative insists on “clandestine connections” in crypto mining farms. They emphasized that this activity steals 28% of energy consumption through irregular connections at the mining farms.
Furthermore, the senators see no consumer protection, crime prevention, market stability, transparency, responsibility, or energy guarantee. Therefore, the initiative prohibits crypto mining until regulators establish rules for the activity.
The senators propose a legal regulation of crypto mining, which integrates legal, financial, and security implications. This includes establishing a clear framework for energy consumption and prices, ensuring equity in access to energy and electrical infrastructure, and improving its environmental impact.
The actions would come into force after approval, although the initiative went to the Justice and Labor Legislation Commission.
The lack of well-defined regulations presents a serious concern, as ANDE’s recent actions exemplified. On April 4, ANDE intervened in a crypto mining facility in Ciudad del Este, Alto Parana, where an “irregular connection” was found. ANDE’s action has been described as a direct confrontation against the illegal activity.
Paraguay is an oasis for crypto mining despite its regulation. BeInCrypto reported that the famous Itaipu Dam on the Parana River generates a staggering 14 gigawatts (GW) of electrical energy. That represents more than 99% of the country’s energy supply.
Additionally, the energy surplus has become the main attraction for Bitcoin miners. They find Paraguay a favorable place to establish their operations.
