In Salto del Guairá, Paraguay, authorities have seized a property containing 2,738 crypto mining units after discovering an unauthorized power connection in the area. The National Electricity Administration (ANDE) used artificial intelligence and power distribution analysis to uncover the electricity theft, which was estimated to be worth $146,000 per month. Additionally, five transformers were confiscated, and the operators of the illegal operation may face four criminal charges.
This is not the first crackdown on illegal crypto farms in Paraguay. In May, at least two other actions were carried out, although these raids yielded more modest results. The government’s efforts involved multiple agencies, including the National Police.
Paraguay was once considered a haven for crypto mining due to its abundant hydropower supply from the Itaipu Dam power plant. However, the country lacked a legal framework for crypto operations. Regulatory legislation was introduced in Congress in 2021 and passed by the Senate in July of the following year.
However, then-president Mario Abdo Benítez vetoed the bill, objecting specifically to the provisions on mining, which he believed incentivized the activity. He argued that crypto mining could divert resources from the country’s developing national industries. Attempts to overturn the veto in the legislature were unsuccessful.
Currently, the crypto mining industry continues to operate in Paraguay but faces the threat of a proposed ban. In April, a bill was proposed that would impose a ban on various crypto activities until comprehensive legislation is passed and the National Electricity Administration can guarantee a sufficient power supply. The bill highlights the issue of rampant illegal mining in the country. Although the temporary ban bill has been set aside, the debate has officially been postponed.
Despite these challenges, Paraguay remains home to major mining facilities. Companies like Bitfarms, Marathon Digital, and Tether have mining operations in the country. In fact, Tether has announced plans to build additional mining facilities in Paraguay.