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Paraguay’s Congress passed two resolutions Thursday forcing all Bitcoin miners to register with authorities within 15 days, the strongest crackdown yet on illegal operations that stole millions in electricity. The National Electricity Administration seized equipment from over 30 illegal farms in 2024 alone.
The first resolution orders the Ministry of Industry and Commerce to produce an extensive registry of all individuals and businesses authorized to participate in Paraguay Bitcoin mining.
The report must include physical and digital records, corporate backgrounds, and verification of mining equipment.
The second resolution demands that the National Electricity Administration (ANDE) provide a full list of every electrical connection authorized for Paraguay Bitcoin mining.
The report must include names of responsible operators, installation addresses, and technical specifications. Both agencies have 15 days to comply.
According to ANDE’s recent data, the crackdown is long overdue. In 2024 alone, the agency intervened in more than 30 illegal mining farms, seizing thousands of ASIC machines and uncovering energy theft on a massive scale.
Illegal mining has grown faster than regulation, and these steps are essential to restoring order, ANDE President Félix Sosa told local press.
Paraguay produces far more electricity than its population needs thanks to the Itaipú and Yacyretá hydroelectric dams.
Traditionally, the government has exported up to 90% of its power to Brazil and Argentina at low contract prices.
But with the rise of Paraguay Bitcoin mining, excess power can now be sold domestically at higher rates, generating around $12 million per month, according to ANDE.
Despite the economic upside, illegal operations have strained the grid, damaged infrastructure, and prompted lawmakers to consider even tougher regulations—including prison sentences of up to 10 years for illicit miners.
Globally, the mining industry remains competitive. The United States currently ranks first in hashrate, followed by Russia and China.
Paraguay holds fourth place, commanding 3.9% of the world’s mining power—a surprising position for a country with a small population but immense energy capacity.
Other nations have implemented similar rules to ensure accountability:
Kazakhstan’s 2023 Law on Digital Assets mandates miners to register hardware, software, and operational details. They must also sell part of their mined Bitcoin through licensed platforms.
“Regulation helps stabilize the sector and protect national infrastructure,” said Bagdat Mussin, Kazakhstan’s former Minister of Digital Development.
Russian miners must register with the Ministry of Digital Development and report digital currency holdings, wallet addresses, and hardware details. Only small-scale miners fall outside the requirement.
Rules vary by state and province, but mining firms must register as businesses and comply with energy regulators—similar to Paraguay’s new structure.
With these new resolutions, Paraguay is positioning itself as a global leader in regulated crypto mining while aiming to eliminate illegal operations entirely. The coming weeks—and the responses from miners—will determine how smoothly the transition unfolds.
Stronger oversight doesn’t stop innovation; it strengthens it, said crypto economist Alejandro Rejala, noting that Paraguay’s energy profile still makes it one of the world’s most attractive mining destinations.
As Paraguay Bitcoin mining enters this new regulatory era, the balance between innovation and oversight is under the spotlight.
While stricter rules aim to curb illegal operations and protect national energy, the country’s immense hydroelectric capacity ensures it remains a top global mining hub. The coming months will reveal whether Paraguay can lead responsibly without stifling crypto growth.
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