Paraguay orders Bitcoin miners to register with state
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Bitcoin miners in Paraguay now have to register with the state after the Chamber of Deputies approved two resolutions to curb illegal Bitcoin mining. The Chamber of Deputies approved two resolutions presented by Deputy María Constancia Benítez on Thursday, December 4. These projects are intended to consolidate the state’s control, transparency and supervision mechanisms. Paraguay’s approach to Bitcoin mining The first resolution directs the Ministry of Industry and Commerce to provide reports on all registered people and companies authorized to mine Bitcoin and cryptocurrencies. This includes all background information in both physical and digital formats. The second resolution targets the National Electricity Administration, known as ANDE, demanding a comprehensive list of all electrical connections authorized for crypto mining. This record must include the names of responsible parties and installation locations. Both agencies have 15 days to deliver the requested reports. The resolutions are needed due to the widespread unauthorized mining operations that Paraguay dealt with in 2024. ANDE reported interventions at more than 30 secret mining farms in 2024 alone. Authorities seized tons of Bitcoin mining equipment and passed a law that punishes illegal mining with up to 10 years in prison. Paraguay produces more electricity than its small population needs. It typically exports 90% of its power production to neighboring countries like Brazil and Argentina at low prices. Still, with the entrance of Bitcoin miners and the expansion of the mining industry, Paraguay can sell the excess energy to miners at a higher rate than it does other countries. Doing this, the National Electricity Administration generates approximately $12 million monthly from cryptocurrency mining operations. The United States ranks first on the global hashrate chart, followed by Russia and China. Paraguay comes in fourth with 3.9% of the global hashrate in its control. Do Bitcoin miners have to register in…
