GET 10% OFF ON YOUR FIRST ORDER. FOR A LIMITED TIME ONLY. Use code: WELCOME on checkout
News

Legislative Challenges Facing Bitcoin Mining Industry in Paraguay

legislative-challenges-facing-bitcoin-mining-industry-in-paraguay

  • About 55 companies are actively mining Bitcoin in Paraguay, benefiting from the rapid construction of large-scale mining operations.
  • Paraguay sells surplus hydroelectric energy at a premium to Bitcoin miners, amidst discussions on industry regulation in the legislature.

Néstor Cristaldo, an engineer specializing in electrical energy, discussed the prevalent issue of energy theft in Paraguay, attributing it to the inadequate security and prevalent corruption in the electrical management system. His observations coincide with the rapid growth of Bitcoin mining operations in Paraguay, driven by the country’s low-cost and plentiful hydroelectric power.

“Regulation and legislation is always one to ten steps behind technological advancement. In the United States, it took them a long time to legislate and they are still adjusting their regulations. Paraguay will take time to generate good legislation for this sector,” warned Cristaldo.

The National Electricity Administration (ANDE) has been actively detecting unauthorized mining operations, having seized over 6,000 mining devices since 2024. Despite numerous reports filed by ANDE regarding energy theft, the response from legal authorities has been minimal, resulting in unresolved cases and a lack of prosecutions.

Paraguay has become a focal point for large multinational corporations that utilize the nation’s hydroelectric power for Bitcoin mining. Approximately 55 companies are currently mining in Paraguay, with several large-scale operations predominantly owned by local entities. 

These firms have quickly established substantial mining facilities, with some setting up 100-megawatt stations in as little as eight months, a process that normally spans one to two years.

Paraguay’s surplus energy is economically sold to neighboring countries like Brazil and Argentina, with the latter owing Paraguay around $200 million. In search of higher returns, the Paraguayan government has started to sell this excess energy to Bitcoin mining firms at increased rates.

Cryptocurrency mining is a contentious issue within the Paraguayan legislature, featuring debates over potential prohibitions on the digital asset industry. 

The Paraguayan Blockchain Chamber, a proponent of the mining sector, is lobbying for laws that tackle energy theft while fostering the industry. Nonetheless, there is a risk that new regulations could impose stricter constraints on the sector.

Cristaldo voiced concerns over the slow pace of legislative progress, indicating that regulations often trail behind technological advancements. He drew parallels to the United States, where it took considerable time for regulations to align with technological progress. 

“There are currently some 55 companies mining in Paraguay, of which four or five are the largest and predominantly Paraguayan. These investments are remarkable for their speed and magnitude in infrastructure,” he said.

Cristaldo anticipates a similar delay in Paraguay regarding the enactment of effective cryptocurrency-related laws.

Latest Press

post-thumbnail
News
4 hours ago
Venezuela’s Bitcoin Mining Crisis: Government Actions and Potential Gas-Powered Solutions
Venezuelan Bitcoin miners halt operations as government disconnects power, citing strain on national...
READ MORE
post-thumbnail
News
4 hours ago
Solana Faces Bearish Pressure Despite Bullish On-Chain Metrics: What’s Next for SOL’s Price?
The post Solana Faces Bearish Pressure Despite Bullish On-Chain Metrics: What’s Next for SOL’s P...
READ MORE
default post thumbnail
News
4 hours ago
DOGE To The Moon: This Dogecoin Metric Just Turned Bullish For The First Time Since 2020
Dogecoin (DOGE) is again in the spotlight as the foremost meme coin could be ready for takeoff. This...
READ MORE
default post thumbnail
News
4 hours ago
Lido (LDO) Poised For Explosive Surge To $17, Expert Forecasts ‘Massive Breakout’
Lido Finance, the liquid staking protocol for the Ethereum (ETH) network, has experienced significan...
READ MORE
default post thumbnail
News
4 hours ago
Curve Founder Faces Massive Blow As CRV Price Dives 40%, Multi-Million Dollar Liquidations
A sudden and dramatic crash in the value of Curve Finance’s native token, CRV, has resulted in sub...
READ MORE
default post thumbnail
News
4 hours ago
Analyst Predicts 35% Jump For Bitcoin In Next Step Of ‘Magic Bands’
Despite the price crash after rising to $69,000, the Bitcoin price remains in the game, with bulls c...
READ MORE
default post thumbnail
News
4 hours ago
Bitcoin Stuck: Here Are 2 Things That Must Happen For BTC To Break $72,000
At spot rates, Bitcoin is firm, but traders doubt the uptrend following the unexpected dump on June ...
READ MORE
default post thumbnail
News
4 hours ago
Memecoin Fight: DADDY Surpasses MOTHER Despite Insider Trading Activity Allegations
The celebrity memecoin mania has added a new player with the recently launched Daddy Tate (DADDY). T...
READ MORE
post-thumbnail
News
4 hours ago
These Altcoin Projects Have Raised the Most Capital in 2024
In 2024, several altcoin projects have secured substantial funding, showcasing growing investor conf...
READ MORE
default post thumbnail
News
4 hours ago
Paxos Reportedly Downsizes Workforce by 20%: Details
Stablecoin issuing company Paxos has laid off 20% of its workforce, decreasing its employee count by...
READ MORE

Publish an article now

Unlock the power of media for instant visibility to the target audience, major SEO boost, greater website traffic and conversion rates.

click here to get started