Bitcoin Mining Ban Proposed in Paraguay Over Power Problems
To address this issue, a group of Paraguayan lawmakers have introduced a bill to temporarily slow down the power-hungry crypto mining industry by pausing all activities related to the ecosystem
As temperatures rise and air conditioners work overtime, the country's power grid struggles to keep the lights on amidst a surge in electricity demand. The hot weather is not the only thing straining the system; the government says that illegal crypto mining farms have been gulping gigawatts like there's no tomorrow.
To address this issue, a group of Paraguayan lawmakers have introduced a bill to temporarily slow down the power-hungry crypto mining industry by pausing all activities related to the ecosystem. They are not mincing words:
"The creation, preservation, storage, and commercialization of virtual assets or crypto-assets, cryptocurrencies, and the installation of crypto-mining farms in Paraguayan territory are temporarily prohibited."
The bill proposes that the ban lasts either 180 days or until a proper regulatory framework is established and ANDE (Paraguay’s National Electricity Administration) can guarantee sufficient infrastructure to support the energy-intensive demands of crypto mining without jeopardizing the rest of the grid.
According to the bill's draft, the lack of a clear regulatory framework for the crypto ecosystem has left the door wide open for various problems, including consumer protection issues, potential criminal activities such as money laundering and tax evasion.
Despite the bill's broad phrasing, the bill's intent seems to target a very specific problem: illegal crypto mining farms that have been popping up across the country. These clandestine operations have been siphoning off electricity and evading existing local regulations.
