Paraguayan Lawmakers Propose Crypto Mining Ban Over Power Problems

Paraguayan Lawmakers Propose Crypto Mining Ban Over Power Problems

The rising temperatures in Paraguay have led to air conditioners running at full throttle. This scenario has endangered the country’s power grid as demand for electricity continues to grow. To tackle this problem, several Paraguayan lawmakers tabled a bill early this week targeting crypto miners.

The Proposed Bill

The policymakers proposed that all crypto miners in Paraguay pause their activities temporarily, arguing that the miners have been consuming a lot of energy. Per the bill, the ban will be enforced until Paraguay’s National Electricity Administration guarantees adequate infrastructure to facilitate the energy-intensive demands of cryptocurrency mining without compromising the nation’s grid.

Following the proposed ban, crypto analyst NelsonDCG said on X, formerly Twitter, that the Paraguayan lawmakers’ bill could prohibit activities such as crypto staking and even holding digital currencies in a Web3 wallet.

Anyone who violates the proposed law risks being sanctioned under the rules governing Paraguay’s financial system and criminal offenses stated in the “Penal Code.”

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Illegal Crypto Miners in Paraguay Targeted

The policymakers behind the latest bill are also targeting illegal crypto mining. They argue that unlawful cryptocurrency mining firms have popped up across Paraguay over the last two years and have been consuming massive amounts of energy while evading local rules.

The lawmakers point to the recent bust at Radio Quindii facilities, where over 650 ASICs were found in operation. When the Parayuan authorities announced this incident earlier this year, they revealed that the illegal crypto mining operations at Radio Quindii cost the government more than $50 million.

Proposed Bill Faces Criticism

While it is unclear whether the bill will be approved and become law, several crypto enthusiasts in Paraguay are already criticizing it. For instance, crypto fanatic Luis Benitez wrote a long X thread on Friday explaining why the bill could cause harm.

He argued that the proposed law doesn’t distinguish between legitimate and illegitimate uses of cryptocurrencies. Benitez wants the bill to be precise and protect crypto users while fighting against illegal crypto-related activities. At the end of his thread, Benitez said he would mobilize the “Hashpy” community to ensure the bill doesn’t advance.

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Michael Varney
About Author

Michael Varney

Michael Varney, a distinguished name in crypto journalism, offers deep insights into the world of blockchain. Merging meticulous research with eloquent prose, Michael's articles decode the complexities of digital currencies, establishing him as an indispensable source for those keen on understanding the evolving crypto landscape.

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