New Regulations Target Illegal Mining Operations
Bitcoin miners in Paraguay are now required to register with the state following the approval of two resolutions by the Chamber of Deputies. These measures aim to strengthen the government's control, transparency, and supervision mechanisms over cryptocurrency mining activities.
The Chamber of Deputies passed these resolutions on Thursday, December 4, as presented by Deputy María Constancia Benítez. The objective is to bring all mining operations under official oversight.
Government Demands Comprehensive Mining Data
The first resolution mandates the Ministry of Industry and Commerce to compile and submit reports detailing all registered individuals and companies authorized for Bitcoin and cryptocurrency mining. These reports must include all relevant background information in both physical and digital formats.
Concurrently, the second resolution directs the National Electricity Administration (ANDE) to provide a complete list of all electrical connections authorized for crypto mining. This record is expected to specify the names of the responsible parties and the locations of these installations. Both government agencies have been given a 15-day timeframe to deliver the requested information.
These resolutions were deemed necessary due to the significant number of unauthorized mining operations that Paraguay encountered in 2024. ANDE reported the intervention in over 30 clandestine mining farms during that year alone. Authorities confiscated substantial amounts of Bitcoin mining equipment and enacted legislation that imposes penalties of up to 10 years in prison for illegal mining.
Paraguay's Energy Landscape and Mining Revenue
Paraguay possesses an electricity production capacity that exceeds the needs of its relatively small population. The country typically exports approximately 90% of its generated power to neighboring nations like Brazil and Argentina at low rates. However, with the influx of Bitcoin miners and the expansion of the mining industry, Paraguay now has the opportunity to sell its surplus energy to miners at a more profitable rate compared to its usual export prices.
Through these cryptocurrency mining operations, the National Electricity Administration generates an estimated $12 million per month.
Globally, the United States leads in hashrate distribution, followed by Russia and China. Paraguay holds the fourth position, controlling 3.9% of the global hashrate.
Global Trends in Cryptocurrency Mining Regulation
Beyond Paraguay, several other major cryptocurrency mining countries have implemented comparable registration requirements to manage the industry's rapid expansion.
Kazakhstan enacted its Law on Digital Assets in 2023, which mandates that all miners must secure licenses and register with government authorities. Mining companies are required to list their hardware and software systems in a dedicated state registry and furnish detailed operational information. Furthermore, Kazakhstan stipulates that miners must trade a portion of their mined Bitcoin through officially licensed exchanges.
In Russia, both legal entities and individual entrepreneurs must register with the Ministry of Digital Development to participate in mining activities. Miners are also obligated to submit details about their acquired digital currency and wallet addresses to Russia’s Federal Financial Monitoring Service. Only minor individual miners consuming energy below government-defined thresholds are exempt from this registration requirement.
Regulations for Bitcoin mining vary across states in both the United States and Canada. Mining operations within the U.S. are generally required to register as businesses and adhere to local energy regulations. In Canada, miners must register with provincial regulators.
Certain regions, such as New York and Quebec, have temporarily prohibited new mining operations due to environmental concerns. Conversely, other areas like Texas and British Columbia actively encourage and welcome miners.
Current Mining Landscape in Paraguay
According to various reports, Paraguay currently hosts 45 licensed cryptocurrency mining operations, with an additional approximately 20 applicants awaiting approval.
HIVE Digital Technologies announced on October 21, 2025, that it had finalized an agreement to develop an additional 100-megawatt hydroelectric-powered data center at its Yguazú site in Paraguay. This expansion is slated to commence in early 2026 and is expected to be fully operational by the third quarter of the same year, thereby increasing HIVE’s total capacity in Paraguay to 400 megawatts.