<p>In the sweltering heat of <a href="https://ultramining.com/news/en/bitfarms-expands-bitcoin-mining-with-renewable-energy-in-paraguay/" rel="noopener noreferrer nofollow">Paraguay</a>'s summer, the country's power grid is under severe strain, not just from the high temperatures but also due to the burgeoning demand from illegal crypto mining operations. These clandestine farms are consuming significant amounts of <a href="https://ultramining.com/news/en/minnesota-man-faces-accusations-of-electricity-theft-for-bitcoin-mining/" rel="noopener noreferrer nofollow">electricity</a>, prompting a group of Paraguayan lawmakers to propose a bill aimed at halting all crypto-related activities. This includes mining, virtual asset storage, and even potentially staking and wallet storage, until a comprehensive regulatory framework is established or for 180 days, whichever comes first. This move is in response to the mining operations' substantial energy consumption and the absence of regulations that has left the country vulnerable to various issues, including potential criminal activities, according to <a href="https://decrypt.co/224880/bitcoin-mining-ban-paraguay-power-grid" rel="noopener noreferrer nofollow">Decrypt</a>.&nbsp;</p>
<p>The proposed legislation also outlines severe penalties for violations, aiming to protect the national financial system and address consumer protection concerns. Despite the bill's intent to curb <a href="https://ultramining.com/news/en/abkhazia-intensifies-crackdown-on-illegal-crypto-mining/" rel="noopener noreferrer nofollow">illegal mining</a> activities, its broad language raises concerns about its potential impact on legal crypto activities. The crackdown on crypto mining comes as Paraguay grapples with a power grid unable to meet the heightened demand, with government officials estimating that these illegal operations cost the state-owned utility ANDE over $60 million a year in lost revenue. The bill's introduction has sparked debate among local experts, who argue for a more nuanced approach that distinguishes between illegal and legitimate crypto activities, suggesting regulation over prohibition to foster economic and technological growth.</p>

Paraguay Considers Crypto Mining Ban to Address Power Crisis

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