The Paraguayan senate has passed a series of reforms that changed penalties for energy and cryptocurrency mining-related energy theft. Now, individuals and companies found to be stealing energy for cryptocurrency mining activities will face jail time for up to 10 years, while energy theft for other purposes will face penalties for up to three years.
Paraguayan Senate Passes Law Imposing up to 10 Years of Jail Time on Crypto Miners for Electricity Theft
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Paraguayan Senate Passes Reform Establishing Harsh Penalties for Cryptocurrency Mining Power Theft
Paraguay is strengthening its stance against illegal cryptocurrency mining and power theft linked to these activities. The Paraguayan senate passed on Thursday a series of reforms directed to give authorities like the National Power Administration (ANDE) and national tribunals tools to impose harsh penalties on criminals mining cryptocurrency with stolen energy.
The Senate approved the modified text sent by the lower chamber where energy theft not linked to cryptocurrency mining or other similar activities can be punished with up to 3 years of jail time or undefined fines. In comparison, power theft linked to cryptocurrency mining activities will be punished with jail time of up to 10 years.
These penalties will apply when detecting any irregular connections to distribution networks, irregular derivations of existing connections, manipulation of meters, or other electrical consumption control elements.
Some senators opposed the approval of this bill, including Yolanda Paredes, who stated these modifications were focused on covering up ANDE officials in their power theft activities. Paredes also noted the possibility of establishing an underground business with the fines and the equipment seized in some cases.
Paredes is not the first to call out ANDE for its participation in alleged corruption schemes. Senator Salyn Buzarquis recently stated that ANDE officials collected bribes to allow illegal bitcoin mining farms to operate underground. At the time, Buzarquis stressed that these unidentified officials billed up to $500,000 to maintain these mining farms operating.
At the same time, ANDE recently raised power fees for cryptocurrency mining in the country, hiking prices by up to 14%. This has caused legal mining operators to consider migrating to neighboring countries like Argentina.
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