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Welcome to Latam Insights, a compendium of Latin America’s most relevant crypto and economic news during the last week. In this issue: Paraguay shut down the largest illegal bitcoin mining operation to date, Argentine and Salvadoran officials met to discuss bitcoin issues, and Ocean launched a global hub in El Salvador.
Paraguay continues to crack down on illegal mining activities that siphon power from the country’s electric grid. In an operation executed in Saltos de Guaira on May 28, the Paraguayan National Power Administration (ANDE) and local prosecutors detected and pulled the plug on a giant bitcoin mining farm hosting 2,738 bitcoin miners.
While many of these machines were disconnected, the farm had bypassed the connection to the electric meter, obtaining the energy for the operation without being accounted by ANDE. In addition to the bitcoin miners, authorities confiscated five electric transformers with a total installed capacity of 7,150 kilo-volt-amperes.
The detection of this farm was possible due to the implementation of several techniques, including supervisory and control systems (SCADA) and artificial intelligence (AI) software to monitor the load current peaks.
Argentina is looking to expand its relationship with El Salvador, seeking to take advantage of its experience regarding bitcoin and cryptocurrencies. According to official reports, Argentine officials from the CNV, the country’s equivalent to the U.S. Securities and Exchange Commission (SEC), and officials from the Salvadoran cryptocurrency regulator, the CNAD, met to discuss issues regarding bitcoin adoption and regulation.
Roberto Silva and Patricia Boedo, president and vice president of the CNV, led the Argentine delegation. Juan Carlos Reyes, president of the CNAD, was present in the name of the Salvadoran institution.
The talks revolved around the Salvadoran experience with Bitcoin, and the digital asset’s adoption as a legal tender, including regulatory aspects. Silva highlighted the Salvadoran expertise in the cryptocurrency asset area, stating that “it has created a specific commission, the National Commission for Digital Assets (CNAD), and therefore has experience that is very valuable for the CNV at this time.”
Ocean, a Bitcoin mining pool backed by Jack Dorsey, announced the launch of an international hub in El Salvador through a new entity. Ocean Mining S.A. de C.V., headquartered in San Salvador, will “continue the advancement of decentralization of Bitcoin mining across the globe,” according to a press release. The company looks towards leveraging the friendly regulation of Bitcoin to “ensure maximum reach and adoption”. Additionally, Ocean stated that it will also contribute to the education and development of bitcoin communities in the country, promoting the development of circular economies.
