Illegal mining surges, Paraguay cracks down on illegal cryptocurrency mining

Overview

Paraguay has reached a significant milestone in its crackdown on illegal cryptocurrency mining, equaling Venezuela in the number of seized Bitcoin (BTC) mining rigs. Paraguayan authorities have confiscated over 10,000 ASIC miners from illegal operators this year.

Paraguay cracks down on cryptocurrency mining

Hernandarias district has seen a surge in illegal mining activities, with 20 criminal cases filed this year.

To this end, Paraguay’s National Electricity Authority (ANDE) conducted more than 70 surprise inspections, resulting in the seizure of over 10,000 ASIC mining rigs.

The latest raid in Ciudad del Este led to the confiscation of 450 ASIC rigs stored in a warehouse.

The seized rigs were not connected to a power grid, indicating they were in storage. Authorities believe the equipment might be linked to a previous raid in Santa Mónica.

Paraguay and Venezuela have different attack points

Former Venezuelan oil minister Tareck El Aissami was arrested on suspicion of corruption at state-owned energy company PDVSA.

Finally,Tareck El Aissami is accused of treason, appropriation of public assets, money laundering and criminal association

Unlike Venezuela's focus on combating government corruption, Paraguay's crackdown aims to stabilize electrical grids at risk of overloading due to illegal mining operations.

Paraguay’s crackdown on mining sparks controversy

Paraguay’s abundance of hydroelectric power has made it a hotspot for Bitcoin mining. Advocates argue that mining can significantly benefit the economy, while opponents cite concerns over grid stability.

A newly formed group of industrial players opposes the new energy rates for miners, arguing that high rates could "kill off" the sector.

The group claims that shutting down the BTC mining sector could cost Paraguay $1.5 billion and jeopardize hundreds of jobs, potentially affecting the nation's international business reputation.

Conclusion

Paraguay's aggressive crackdown on illegal Bitcoin mining reflects the nation's efforts to balance the benefits of leveraging its hydroelectric power for economic gain against the need to maintain grid stability and prevent illegal operations.

The outcome of this crackdown and the ongoing policy debates will shape the future of Paraguay's crypto mining industry and its economic implications.