Paraguay proposes a law punishing unauthorized Bitcoin miners with up to 10 years in prison. Aims to combat energy theft and protect the the power grid.
The government of Paraguay will request that legislators pass a bill that could sentence unauthorized Bitcoin (BTC) miners to ten years in prison.
Paula Carro, a presidential spokesperson, informed reporters on Friday, May 17, that the measure has been forwarded to parliament “immediately.”
Ten Years in Prison: The Penalties of Illegitimate Bitcoin Miners Are Lengthier
According to Carro, the measure would “punish” unauthorized miners with “multiple years in prison.”
The proposed legislation will also give Paraguayan police and prosecutors the authority to seize mining equipment from unauthorized operators.
According to Carro, the measure “seeks to safeguard the state-owned National Electricity Administration (ANDE),” as Criptonoticias reported.
She further stated that the “theft of substantial quantities of energy by unauthorized Bitcoin mining operators” posed a “threat” to ANDE.
The law states that the courts may impose “a maximum penalty” of ten years in prison “for the offence of energy theft.”
Additionally, the proposals permit ANDE to request that law enforcement confiscate and sell mining rigs, designating the state-owned enterprise as the “beneficiary of the proceeds.”
Bitcoin mining has flourished in Paraguay despite the efforts of legislators to legislate on the subject.
The country possesses abundant hydroelectric energy, an ideal resource for Bitcoin miners.
However, many miners based in Paraguay have recently attempted to establish unauthorized grid connections.
Power providers have also expressed concerns regarding overloads and various other complications.
In response, the police have initiated an investigation. Since the start of the current year, law enforcement officials have apprehended over 5,000 ASIC miners.
Illegal Bitcoin Miners Face Police Action
ANDE has participated in approximately seventeen searches on illicit Bitcoin and alternative cryptocurrency mines nationwide since the commencement of 2024.
Additionally, this has sparked a flurry of activity in parliament. At least fourteen legislators support a private member’s bill that would effectively prohibit Bitcoin mining in the country.
A “temporary” prohibition on Bitcoin mining is proposed in the measure “until the issue of illegal mining is resolved.”
Nevertheless, this legislation has yet to pass the committee stage, and its passage into the House for a vote is not assured.
If the government’s own measure is enacted, this private member’s bill will likely be withdrawn.
Carro asserts that the Public Ministry, ANDE, and the Paraguayan Judiciary support the government’s bill.
She concluded that unauthorized Bitcoin mining has caused Paraguay power providers to incur losses of millions of dollars.
