Summary
TLDR: Paraguay is facing a power crisis due to the surge in electricity demand from illegal crypto mining farms. Lawmakers have introduced a bill to temporarily ban all crypto-related activities until a proper regulatory framework is established. Critics argue that the bill’s broad language could unintentionally outlaw legitimate crypto activities and push miners to operate illegally. There are calls for a more balanced approach to regulate energy-intensive mining while promoting energy-efficient tokens.
Key Points
1. Paraguay is facing a power crisis due to a surge in electricity demand from both the hot weather and illegal crypto mining farms.
2. Lawmakers in Paraguay have introduced a bill to temporarily prohibit the creation, storage, and commercialization of virtual assets and crypto-mining activities to address the strain on the power grid.
3. The proposed law aims to tackle illegal crypto mining operations that have been siphoning off electricity and evading local regulations, potentially costing the state-owned utility millions in lost revenue.