Time

The Paraguayan Senate has passed a series of reforms that impose severe penalties on individuals and companies involved in energy theft for cryptocurrency mining activities. The new legislation stipulates that those found guilty of stealing <a href="https://ultramining.com/news/en/minnesota-man-faces-accusations-of-electricity-theft-for-bitcoin-mining/">electricity</a> for such purposes could face up to 10 years in prison. This is a significant increase compared to the maximum of three years for energy theft unrelated to cryptocurrency mining, according to <a href="https://news.bitcoin.com/paraguayan-senate-passes-law-imposing-up-to-10-years-of-jail-time-on-crypto-miners-for-electricity-theft/">Bitcoin.com</a>. 
The reforms grant authorities like the National Power Administration (ANDE) and national tribunals the tools needed to detect and penalize irregular connections, tampering with meters, and other forms of unauthorized electrical consumption linked to crypto mining. This move underscores Paraguay's determination to crack down on <a href="https://ultramining.com/news/en/abkhazia-intensifies-crackdown-on-illegal-crypto-mining/">illegal mining</a> operations that exploit the country's energy resources. 
Despite the Senate's approval, the legislation has faced opposition from some members. Senator Yolanda Paredes criticized the reforms, suggesting that they could cover up corrupt activities by ANDE officials. She also expressed concerns about the potential for an underground business involving the fines and seized equipment from these operations. Her remarks followed allegations by Senator Salyn Buzarquis that ANDE officials had accepted bribes to allow illegal bitcoin mining farms to operate, reportedly collecting up to $500,000 to keep these farms running. 
Amidst these legal and regulatory challenges, ANDE has also raised power fees for cryptocurrency mining by up to 14%, prompting some legal mining operators to consider relocating to neighboring countries like Argentina. This decision has added to the tensions between the government and the crypto mining community in Paraguay. 
As Paraguay intensifies its efforts to regulate the cryptocurrency mining sector, the new penalties are expected to serve as a deterrent to illegal operations and ensure fair use of the country's electrical infrastructure.

Paraguayan Senate Passes Law Imposing Up to 10 Years of Jail Time on Crypto Miners for Electricity Theft

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Άλλα άρθρα που δημοσιεύτηκαν στις 13 Ιουλ 2024

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