- The amendment to Article 173 of the Penal Code was approved with significant support: 29 votes in favor, 7 abstentions.
- The legislation now moves to the Chamber of Deputies; if approved, President Santiago Peña will decide whether to sign or veto it.
The Paraguayan Senate has recently approved a measure imposing severe penalties for unauthorized Bitcoin mining operations. This legislation aims to address the theft of electricity for commercial or industrial purposes by increasing prison sentences to up to 10 years for those caught mining Bitcoin without proper permits.
In addition, the law mandates the confiscation and forfeiture of ASIC mining equipment involved in such activities.
The amendment was introduced in Article 173 of the Paraguayan Penal Code and was a government initiative, presented by Senator Ever Villalba last month. The proposal received significant support in the Senate, passing with 29 votes in favor and 7 abstentions, with no opposition.
This legislative action targets operators who illegally connect to the power grid, as mentionedin Crypto News Flash. According to Senator Villalba, the amendment is not intended to criminalize the cryptocurrency mining industry, but to regulate the misuse of electric power. Villalba highlighted the significant financial gains from these illegal connections, underscoring the need to control this abuse to protect the nation’s electrical infrastructure.
Villalba indicated that cryptocurrency mining activity should not be «criminalized» and explained that, on the contrary, «it is about controlling the irregular use of energy».
The bill now passes to Paraguay’s Chamber of Deputies.
If approved, it will go to the desk of President Santiago Peña for his signature into law or veto. This move by the Paraguayan Senate is part of a broader effort to curb unauthorized and fraudulent activities associated with Bitcoin mining, which has been a growing concern due to the considerable strain it places on the country’s energy supply.
In addition to this bill, there are currently four other legislative proposals in the Paraguayan Congress related to Bitcoin mining, already covered in Crypto News Flash. Among them is a proposal advocating a total ban on the activity within the country.
These legislative efforts signal a shift towards stricter regulation of digital mining practices in Paraguay, with the goal of safeguarding essential public services and promoting the responsible use of resources in the burgeoning cryptocurrency field.
