Venezuela and Paraguay are “on the warpath” against cryptocurrency miners. Illegal and more.
The Venezuelan Ministry of Energy has proposed disconnecting mining farms from the national power grid. The agency stated the need for an efficient and reliable power supply to Venezuela and eliminating the load on the network associated with the activities of mining farms.
Separately, I would like to note that in the meantime, the fiat catastrophe continues in the country in the form of hyperinflation of the national currency Bolivar. A year ago, we gave an example that to buy a roll of toilet paper, you need more bolivars than the actual size of this roll. Now the Venezuelan bolivar has depreciated so much that people are throwing away bags of money with the trash.
It is not surprising if in such a situation people seek salvation in cryptocurrencies.
Meanwhile, Paraguayan authorities are considering a bill that would provide up to 10 years in prison for illegal miners. The bill suggests that police and prosecutors will be able to confiscate and sell mining equipment.
And this is not the first bill of this kind. In April, we wrote that Paraguay (the leader in hydroelectric power generation in South America) was proposing to ban BTC mining. Then a bill was introduced proposing a ban on mining for 180 days or until a regulatory framework is created due to problems with electricity.
If the news from Venezuela is more a problem for the Venezuelans themselves, then potential problems for industrial mining in Paraguay could come back to haunt the level of global computing power for the#Bitcoinnetwork.