A property in Salto del Guairá, Paraguay, was recently seized by the National Electricity Administration (ANDE) after an unauthorized power connection was discovered. The property contained 2,738 crypto mining units, and ANDE estimated that the electricity theft was worth $146,000 per month. In addition to the seizure of the mining units, five transformers were also confiscated. The operators of the illegal operation may face four criminal charges.
This is not the first crackdown on illegal crypto farms in Paraguay. In May, two other actions were carried out, although they yielded less significant results. These government actions involved various agencies, including the National Police.
Paraguay has been known as a crypto mining haven due to its abundant hydropower supply from the Itaipu Dam power plant. However, the country lacked a legal framework for crypto operations until regulatory legislation was introduced in 2021 and passed by the Senate in July of the following year.
Despite the passage of the legislation, it was vetoed by then-president Mario Abdo Benítez, who objected to the provisions on mining. He believed that crypto mining could detract from the development of national industries, despite the country’s power resources. Attempts to overturn the veto in the legislature were unsuccessful.
Currently, the crypto mining industry still operates in Paraguay but faces a potential ban proposed in April. The proposed ban would prohibit the creation, storage, marketing, and installation of crypto assets and mining farms in Paraguay. It would be in effect for 180 days or until comprehensive legislation is passed and ANDE can ensure a sufficient power supply. The temporary ban bill has been put on hold, but the debate is officially postponed.
Despite the uncertainty surrounding crypto mining in Paraguay, the country remains home to major mining facilities such as Bitfarms, Marathon Digital, and Tether, which announced plans to build mining facilities in the country in November.
Overall, the recent seizure of crypto mining units in Paraguay highlights the ongoing efforts to regulate and monitor the crypto mining industry in the country.