Paraguay, known for its abundant hydropower resources, is intensifying efforts to combat power theft associated with crypto mining activities, with recent raids resulting in the seizure of thousands of ASICs (Application-Specific Integrated Circuits).

In Salto del Guairá, Paraguay, authorities seized 2,738 crypto mining units after the National Electricity Administration (ANDE) uncovered an illegal power connection. The sophisticated operation, utilizing artificial intelligence and power distribution analysis, estimated the electricity theft to be valued at approximately $146,000 per month, prompting the seizure of five transformers on the premises. ANDE indicated that criminal charges may be forthcoming against those responsible for the illicit operation.

These raids are part of a broader crackdown on unauthorized crypto mining operations across Paraguay. In May alone, multiple actions against illegal crypto farms have been conducted, demonstrating the government's concerted effort to curb power theft and enforce regulatory compliance. These initiatives involve collaboration between various agencies, including the National Police, underscoring the government's commitment to maintaining law and order in the crypto sector.

Paraguay's stance on crypto mining has been a subject of contention, highlighted by a veto by former President Mario Abdo Benítez of regulatory legislation aimed at incentivizing mining activities. The vetoed bill raised concerns about the potential adverse impact of crypto mining on the country's burgeoning industries, despite its abundant hydropower supply from the Itaipu Dam power plant.

While Paraguay continues to grapple with power theft and illegal mining, proposals for comprehensive crypto regulation are still pending. A bill introduced in April sought to impose a temporary ban on various crypto activities, including the creation, storage, and marketing of virtual assets, pending the enactment of comprehensive legislation and assurance of adequate power supply by ANDE. Although the bill has been sidelined for now, it underscores ongoing debates surrounding crypto regulation in Paraguay.

Despite regulatory uncertainties, Paraguay remains an attractive destination for crypto mining operations, with major players such as Bitfarms, Marathon Digital, and Tether announcing plans to establish mining facilities in the country. However, the recent crackdown on power theft underscores the importance of regulatory compliance and adherence to electricity usage guidelines in the evolving crypto landscape of Paraguay.