Introducing Latam Insights, a roundup of the most significant cryptocurrency and economic developments in Latin America over the past week. This edition covers Venezuela's seizure of over 11,000 bitcoin miners to address energy concerns, Paraguay's crackdown on illegal bitcoin mining operations, and Brazil's plan to solidify cryptocurrency regulations by the end of this year.

Venezuelan Authorities Take Action Against Bitcoin Mining to Tackle Energy Crisis

The Venezuelan National Power Ministry has initiated measures to monitor high-power consumers, including bitcoin miners, connected to the national power grid. Through social media, the ministry announced its intention to disconnect all cryptocurrency mining operations from the electrical system to alleviate the strain on energy demand. Governor Rafael Lacava led operations resulting in the confiscation of over 11,000 ASICs and the shutdown of numerous mining farms in Carabobo state. These actions aim to alleviate energy shortages caused by climate and sanctions-related challenges.

Paraguay Cracks Down on Illegal Bitcoin Mining: Over 550 Miners Seized

Paraguayan authorities are intensifying efforts to combat illegal bitcoin mining activities that illicitly draw power from the national grid to evade electricity fees. Using AI software and distribution maps, National Power Administration officials uncovered two bitcoin mining farms. The first raid, conducted in the Paraguari department, led to the seizure of 396 bitcoin miners. Another operation in the Canindeyu department resulted in the confiscation of 176 mining machines and two transformers, representing a significant power draw.

Central Bank of Brazil to Finalize Crypto Regulations This Year

The Central Bank of Brazil has unveiled plans to establish regulatory clarity for virtual asset service providers (VASPs) and stablecoins by the end of 2024. The regulatory roadmap comprises three phases: initiating public consultations on VASP standards, internally planning the regulation of stablecoins focusing on payment and foreign exchange sectors, and finalizing rules for VASPs' entry into the Brazilian market. This initiative aims to create a robust regulatory framework for the cryptocurrency industry in Brazil.