The Paraguayan Senate recently passed an amendment to Article 173 of the Penal Code, aimed at cracking down on unauthorized Bitcoin mining operations. The legislation seeks to address the theft of electricity for commercial or industrial purposes by increasing jail terms to up to 10 years for individuals caught mining Bitcoin without proper permissions. The law also mandates the confiscation and forfeiture of ASIC mining equipment used in such illegal activities. The proposal, presented by Senator Ever Villalba, received significant support in the Senate, passing with 29 votes in favor and 7 abstentions, without any opposition. This move is part of a government initiative to regulate the misuse of electrical power without criminalizing the cryptocurrency mining industry in Paraguay.
Senator Villalba emphasized that the aim of the amendment is not to criminalize cryptomining but to control the irregular use of energy, particularly the significant financial gains made from illegal connections to the electricity grid for mining Bitcoin. The amendment now moves to the Paraguayan Chamber of Deputies for further consideration. If approved, it will then proceed to President Santiago Peña’s desk for signing into law or veto. This legislative action is part of a broader effort to curb unauthorized and fraudulent activities associated with Bitcoin mining, which has put a strain on the country’s power supply.
In addition to this bill, there are four other legislative proposals in the Paraguayan Congress related to Bitcoin mining, indicating a broader trend towards stricter regulation in the country. One of these proposals advocates for a complete ban on Bitcoin mining within Paraguay. These efforts reflect a push towards safeguarding essential public utilities and promoting responsible resource use in the rapidly growing field of cryptocurrency. The increased scrutiny and regulation of digital mining practices in Paraguay highlight the government’s commitment to addressing the challenges posed by unauthorized and fraudulent activities in the cryptocurrency industry.
The passage of the amendment to Article 173 of the Penal Code marks a significant step towards regulating Bitcoin mining operations in Paraguay and protecting the nation’s electrical infrastructure from abuse. By imposing harsh penalties on individuals engaged in unauthorized mining activities, the government aims to deter such practices and ensure compliance with the law. The legislation also underscores the importance of responsible resource use and the need to safeguard essential public utilities in the face of growing concerns about the environmental impact and strain on power supplies caused by Bitcoin mining.
The amendment signals a shift towards tighter oversight of digital mining practices in Paraguay, highlighting the government’s commitment to addressing the challenges posed by unauthorized and fraudulent activities in the cryptocurrency industry. With multiple legislative proposals pending in the Paraguayan Congress, including a potential ban on Bitcoin mining, it is clear that regulators are taking steps to protect the country’s resources and promote responsible behavior in the cryptocurrency sector. As such, the government’s efforts to regulate Bitcoin mining operations reflect a broader trend towards ensuring the sustainability and integrity of digital mining practices in Paraguay.
