By George Ward
According to Paraguay’s National Power Administration (ANDE), the number of illegal BTC mining operations is increasing in the country. The power authority believes that this could affect the country’s power sector.
Paraguay’s power authority has expressed concern over the increase in illegal crypto miners. The organization’s report stated that this rise affects the nation’s power sector. In addition, these illegal crypto miners are consuming much power without payments.
These miners flock to Paraguay because of the country’s cheap power tariffs. Meanwhile, the ANDE said this affordable tariff for BTC miners harms the nation’s electric grid. Also, the power agency noted that this could lead to power instability in the country.
Miguel Angel Baez, ANDE’s technical director, said the agency had to set up a regional vigilante committee. Thus, it could supervise crypto mining operations and detect illegal activities.
However, the director said that disconnecting such operations has not been fruitful. According to him, more illegal miners spring up after each disconnection. He added that these Bitcoin miners use more electricity than an apartment complex.
Meanwhile, this situation is not entirely new in Paraguay. Before now, ANDE disconnected the electricity supply to some miners over power-related crimes.
In August, Alfredo Arguello, the leader of the East Region Management Division, said they detected irregularities in the region. These irregularities included bypass connections, modified power meters, and direct connections.
They had uncovered the problem during their supervisory visits to some Bitcoin miners. These Miners’ actions make the power authority lose over $400,000 monthly.
Paraguay’s Senate Greenlights Crypto Bill
Meanwhile, a lawmaker proposed a crypto bill to regulate the crypto mining sector. According to the bill, the maximum fee for crypto miners should be 15% more than what similar companies pay.
However, the country’s power authority rejected the fee, saying it was too small. It cited the high-power consumption of Bitcoin miners.
Instead, the organization called for the law to be vetoed and asked for new electricity fees. Last month, Mario Abdo, Paraguay’s President, vetoed the crypto bill.
Abdo argued that the sector was energy-driven and needed little workforce. Furthermore, the mining sector did not provide many employment opportunities in the country.
However, the country’s senate passed the bill despite the President’s rejection. The Paraguayan senate passed the bill to law without Abdo’s support on September 30. Paraguay remains an attractive location for BTC mining firms.
A few weeks ago, a BTC mining firm, Pow.re, said it is constructing two mining stations in Paraguay. Both stations will use 12MW of hydroelectric power to fuel their mining activities.