Paraguayan authorities are stepping up their efforts to combat the illegal bitcoin mining industry in the country. They are utilizing innovative techniques, such as artificial intelligence (AI) and distribution systems, to detect and shut down these activities. In a span of less than a week, two illegal bitcoin mining operations have been closed down, resulting in the seizure of over 550 miners and causing significant damage to the National Power Administration (ANDE).
Paraguay is determined to put an end to the illegal bitcoin mining activities that directly tap into the country’s power grid, avoiding the payment of electricity fees. Local reports state that ANDE officials have discovered two bitcoin mining farms by utilizing AI software and examining distribution maps.
The first operation took place on May 19th in the Paraguari department. A total of 396 bitcoin miners were confiscated, along with other equipment used to facilitate these operations. The second seizure occurred on May 22nd in the Canindeyu department, where power measurement equipment was bypassed to obtain energy without paying the associated fees. At this site, ANDE officials, in collaboration with the police and local prosecutor’s office, seized two transformers with a capacity of 1,000 KVA each, representing a total power of 2,000 KVA, as well as 176 bitcoin mining machines.
ANDE will assess the damage caused to the power grid by these operations and will demand the payment of stolen energy fees from those responsible. Additionally, fines will be imposed for the crimes committed, which include illegal theft of electrical energy, disruption of public service, and sabotage.
These actions align with the recent change in stance by the Paraguayan government towards bitcoin mining. They are urging lawmakers to pass a bill that imposes severe penalties on illegal miners. If approved, the proposed regulation will enable ANDE to have more tools at their disposal to combat these operations that exploit the country’s power capacity.
To stay updated on the latest developments in cryptocurrency and the Latin American economy, subscribe to our Latam Insights newsletter.
What are your thoughts on the crackdown by Paraguayan authorities on illegal bitcoin mining operations? Share your opinions in the comments section below.
