Paraguay is tightening its grip on the cryptocurrency mining industry, with a proposed bill threatening illegal Bitcoin miners with a decade behind bars. The government's move comes as a response to a surge in illegal mining operations stealing vast amounts of energy from the state-owned National Electricity Administration (ANDE).

Presidential spokesperson Paula Carro emphasized the urgency of the situation, stating the bill aims to "punish" illegal miners with "multiple years in prison" alongside equipment seizures by authorities. This crackdown targets the theft of electricity, a crucial resource for Paraguay's booming Bitcoin mining scene.

The country boasts abundant hydroelectric power, a dream come true for energy-hungry mining rigs. However, the allure of cheap energy has attracted a swarm of illegal miners bypassing the grid, causing overloads and headaches for ANDE. This has prompted law enforcement to take action, seizing over 5,000 mining units since the year began.

The government's bill isn't the only one on the table. A separate proposal by lawmakers seeks a more drastic solution: a temporary ban on all Bitcoin mining until the illegal operations are under control. While the fate of this private member's bill remains uncertain, the government's push for harsher penalties suggests a different approach.

Carro claims the government's bill enjoys the backing of key players like the Public Ministry, ANDE, and the Judiciary. With millions of dollars in losses allegedly stemming from illegal mining, Paraguay is determined to restore order and protect its valuable energy resources. The battle for control of Paraguay's digital gold rush continues, with the outcome impacting both the legal mining industry and the nation's power grid.