Paraguay cracks down on illegal Bitcoin mining – Impact on revenue

• Paraguay’s legal authorities seized large amounts of illegal Bitcoin mining machines.
• Miner revenue collected continued to decline.

Bitcoin’s [BTC] recent surge in price has inspired optimism in the crypto market, especially among BTC bulls.

However, the recent regulatory scrutiny of miners in Latin America and other parts of the world could affect BTC’s price and provide hindrances to its current rally.

Miners on the run

Authorities in Ciudad del Este, Paraguay, have seized 450 Bitcoin mining machines (ASICs) from a warehouse in the Caacupemi neighborhood of Hernandarias district.

This latest operation brings the total number of seized mining equipment in the country to over 10,000 this year, matching Venezuela’s tally.

The 450 ASICs were discovered on the 26th in a mining farm uncovered by the National Electricity Administration (ANDE).

With over 70 raids conducted thus far, Paraguay has solidified its position as a leading country in the interception of illicit Bitcoin mining operations.

An official statement revealed that ANDE authorities have uncovered what appears to be a storage facility for equipment and materials intended for the construction of cryptocurrency mining operations.

Consequently, the power plant has formally requested a comprehensive investigation by the Public Prosecutor’s Office into this matter.

Intriguingly, equipment that had previously vanished from another location was also discovered at the site, specifically at Estancia Santa Monica, situated at kilometer 46 along Route PY07.

A recent operation targeting a cryptocurrency mining facility ended in failure when the owners, seemingly tipped off about the raid, managed to abscond with the valuable ASIC processors before authorities arrived.

Complaints being raised

In a separate development, Paraguayan authorities in Hernandarias have filed 20 criminal complaints related to illegal cryptocurrency mining activities.

These investigations have led to the seizure of over 10,000 Bitcoin mining machines, a figure nearly equivalent to the total amount confiscated in Venezuela, based on official reports.

Read Bitcoin’s [BTC] Price Prediction 2024-25

Paraguay’s massive hydropower potential, mainly from Itaipu, once attracted Bitcoin miners. However, a government crackdown on illegal mining farms has revealed widespread energy theft and possible official involvement.

Bitcoin mining activity drops

At the time of writing, the overall state of miners was not looking positive. The daily miner revenue collected by miners had fallen from $53 million to $34 million in the last week.

Source: Blockchain.com