In a significant regulatory move, Paraguay has mandated that all Bitcoin miners register with the state. This decision follows the approval of two resolutions by the Chamber of Deputies on December 4, aimed at curbing illegal Bitcoin mining operations.
The first resolution obligates the Ministry of Industry and Commerce to compile comprehensive reports detailing all individuals and companies authorized to engage in Bitcoin and cryptocurrency mining. This report will encompass both physical and digital information pertaining to these operations.
In tandem, the second resolution targets the National Electricity Administration (known as ANDE), requiring it to provide a detailed list of all electrical connections sanctioned for crypto mining activities. This list must include the names of those responsible as well as the locations of the installations. Both agencies have been given a strict deadline of 15 days to deliver these reports.
This regulatory response comes in light of rampant unauthorized mining activities that Paraguay has encountered in recent years. In fact, ANDE has reported intervening in more than 30 clandestine mining farms throughout 2024. The authorities have confiscated substantial amounts of Bitcoin mining equipment and enacted legislation that can impose prison sentences of up to 10 years for illegal mining.
Despite its small population, Paraguay boasts an abundance of electricity, generating more power than it can consume. The country typically exports around 90% of its energy production to neighboring nations such as Brazil and Argentina at relatively low prices. However, the influx of Bitcoin miners presents an opportunity for Paraguay to sell its surplus energy at higher rates, generating approximately $12 million monthly from cryptocurrency mining operations.
On the global stage, the United States leads in hashrate distribution, followed by Russia and China. Paraguay currently holds the fourth position, controlling 3.9% of the global hashrate.
Other countries with significant mining operations have begun implementing similar registration requirements in response to the industry”s rapid expansion. For instance, Kazakhstan introduced its Law on Digital Assets in 2023, which necessitates that all miners obtain licenses and register with governmental authorities. In Russia, legal entities and individual entrepreneurs must also register with the Ministry of Digital Development to engage in mining activities.
In the United States and Canada, the regulations concerning mining vary by state. In the U.S., miners must register as businesses and adhere to local energy laws, while in Canada, they register with provincial regulators. Some jurisdictions, such as New York and Quebec, have even enacted temporary bans on new mining operations due to environmental considerations, while others like Texas and British Columbia are more welcoming to miners.
Currently, Paraguay has 45 licensed cryptocurrency mining operations, with about 20 additional applicants awaiting approval. Notably, HIVE Digital Technologies announced plans on October 21, 2025, to develop a new 100-megawatt hydroelectric-powered data center at its Yguazú site, expected to commence in early 2026 and increase its total capacity in Paraguay to 400 megawatts.
