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Paraguay’s crypto mining sector is facing a crisis as the Administración Nacional de Electricidad (ANDE) announced a significant electricity price hike for legal miners, set to take effect on August 1. This decision could force up to 70% of legitimate crypto mining operations out of business, resulting in potential losses of up to $1.5 billion for the Paraguayan economy, according to <a href="https://cointelegraph.com/news/paraguay-crypto-miners-warn-electricity-price-hike" rel="noopener noreferrer nofollow">Cointelegraph</a>.
Jimmy Kim, spokesperson for the Chamber of Digital Asset Mining (Capamad), expressed deep disappointment over ANDE’s decision. He noted that the planned 16% increase follows a substantial 54% hike in 2022. These rising costs could make legal crypto mining unsustainable in Paraguay. Kim highlighted that the increase threatens thousands of direct and indirect jobs and over $1.5 billion in planned technology and infrastructure investments.
Capamad represents legal Bitcoin and altcoin miners in Paraguay, urging the government to reconsider the price hike. The organization argues that while actions against illegal <a href="https://ultramining.com/news/en/hut-8s-q2-2023-a-bitcoin-mining-marvel/" rel="noopener noreferrer nofollow">crypto miners</a> are necessary, penalizing legitimate operators will damage the economy. Kim emphasized that more than 50 companies operating legally have already invested over $700 million, marking the largest foreign direct investment Paraguay has ever received.
ANDE justified the price increase by citing the need to protect the electrical system's integrity, disrupted by <a href="https://ultramining.com/news/en/abkhazia-intensifies-crackdown-on-illegal-crypto-mining/" rel="noopener noreferrer nofollow">illegal mining</a> operations. The government also announced more severe penalties for illegal electricity theft. However, Capamad called on ANDE to urgently review the planned increase to safeguard a vital revenue source for the country’s economy.
As the August 1 deadline approaches, the future of Paraguay’s legal crypto mining industry hangs in the balance. The outcome of this decision will significantly impact the sector’s sustainability and the broader economic contributions of these operations.

ANDE’s Electricity Price Hike Could Force 70% of Paraguay Crypto Miners Out of Business

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