Paraguay Gov’t Looks to Jail Illegal Bitcoin Miners for ‘Up to 10 Years’

The government of Paraguay is taking a strong stance against illegal Bitcoin mining, proposing a bill that could lead to miners being jailed for up to 10 years. The draft law also includes provisions for the seizure of mining equipment from illegal operators. The government aims to protect its state-owned National Electricity Administration (ANDE) from energy theft by illegal mining operators. The bill allows the courts to impose a maximum sentence of 10 years for the crime of energy theft. Additionally, ANDE would be able to sell seized mining rigs and benefit from the proceeds. Paraguay has seen a boom in Bitcoin mining, thanks to its surplus hydroelectric energy resources. However, some miners have resorted to illegal connections, leading to power overloads and other issues. Law enforcement has launched crackdowns and confiscated thousands of ASIC miners. Meanwhile, a separate bill proposed by 14 lawmakers seeks to temporarily ban Bitcoin mining until the issue of illegal mining is resolved. However, it has not yet progressed beyond the committee phase. The government’s bill, backed by the Public Ministry, ANDE, and the Paraguayan Judiciary, aims to address the millions of dollars in losses incurred by power providers due to illegal mining.