Paraguayan government will arrest illegal Bitcoin miners for “up to 10 years”

Last updated: May 19, 2024 7:30 pm EDT | 2 minutes reading

The government of Paraguay will ask lawmakers to approve a bill that proposes the arrest of illegals Bitcoin (BTC) miners for up to 10 years.

Presidential spokeswoman Paula Carro told reporters on Friday, May 17, that the government sent the bill to parliament “urgently.”

10 years in prison: Illegal Bitcoin miners face longer prison sentences

Carro said the project aims to “punish” illegal miners with “several years in prison”.

The bill will also allow the Paraguayan police and Public Ministry to confiscate mining equipment from illegal operators.

Per CryptonewsCarro also said that the project “seeks to protect the state-owned National Electricity Administration (ANDE)”.

She added that the “theft of large amounts of energy by illegal Bitcoin mining operators” posed a “threat” to ANDE.

The terms of the bill allow courts to impose “a maximum penalty” of a decade in prison “for the crime of energy theft.”

The proposals also allow ANDE to ask the police to seize mining platforms and sell them, with the state company being “the beneficiary of the proceeds”.

Bitcoin mining has grown in Paraguaywhere the legislators fought to bring it into the legal sphere.

The country has considerable energy resources that BTC miners consider ideal – namely surplus hydroelectric power.

However, in recent years, many miners based in Paraguay have sought to create illegal connections to the networks.

And energy providers have complained that they face overloads and other problems.

The police responded by launching a crackdown. Since the beginning of this year, officials have seized more than 5,000 ASIC miners.

The Yacyretá Dam, an important source of Paraguayan electricity. (Source: Eby gov py [CC BY-SA 2.5])

Crackdown: Illegal Bitcoin miners face police action

ANDE has participated in around 17 attacks on illegal BTC and altcoin mining farms across the country since the beginning of 2024.

This also led to a flurry of activity in parliament. At least 14 lawmakers supported a private member’s bill this would effectively ban Bitcoin mining in the country.

The bill proposes a “temporary” block on BTC mining “until the problem of illegal mining is resolved.”

However, this bill has not yet passed the committee stage and it is not certain that it will reach the Chamber for a vote.

If the government succeeds with its own bill, this private member’s bill will likely be shelved.

The government’s bill has the support of the Public Ministry, ANDE and the Paraguayan Judiciary.

She concluded that illegal BTC mining “resulted in losses worth millions of dollars” for Paraguayan energy suppliers.

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