Paraguay to Mine Bitcoin With Seized Rigs as Colombia Advances Crypto Regulation

• Paraguay plans to mine Bitcoin using confiscated mining machines from illegal energy operations.
• Colombia’s central bank has finalized a draft law to regulate digital assets in the country.
• Argentine neobank Ualá raised $195 million to expand across Latin America.

Latin America continues to emerge as a dynamic region for digital assets and fintech innovation.

Recent developments show governments and financial companies taking major steps to shape the region’s financial future from state backed Bitcoin mining initiatives to new regulatory frameworks and large fintech funding rounds.

Paraguay to Mine Bitcoin With Seized Hardware

Paraguay is exploring a new initiative to join the global Bitcoin mining industry by using confiscated mining machines seized during illegal energy theft inspections.

The country’s state owned power utility Administración Nacional de Electricidad (ANDE) has partnered with Morphware, an artificial intelligence and cryptocurrency mining firm, to evaluate a state backed mining operation.

The partnership will explore the use of Paraguay’s abundant hydroelectric energy particularly power generated from the Itaipu Dam to support the initiative.

According to Morphware, the memorandum of understanding allows the companies to explore Bitcoin mining as a national level opportunity within Paraguay’s broader energy and digital infrastructure strategy.

The proposal would allow the country to turn confiscated mining equipment from illegal operators into productive infrastructure while also utilizing surplus electricity generated by its hydroelectric facilities.

Colombia Prepares Crypto Regulation

Meanwhile, Colombia is moving closer to establishing a formal regulatory framework for digital assets.

The Central Bank of Colombia has finalized a draft law aimed at regulating activities in the cryptocurrency sector, which currently operates in a legal gray area.

The proposed framework seeks to clarify the role of virtual assets while recognizing their potential economic benefits.

According to Andres Murcia, Deputy Manager of Monetary and International Investments at the central bank, regulators initially approached digital assets cautiously. However, their stance evolved over time as authorities acknowledged the innovative potential of the technology and its possible contributions to the national economy.

The new legislation is expected to provide clearer rules for crypto industry participants and encourage responsible innovation.

Ualá Raises $195 Million for Regional Expansion

In the fintech sector, Ualá, an Argentine digital banking platform, announced a major funding milestone.

The company raised $195 million in a new investment round, further strengthening its position as one of the largest fintech firms in Argentina and across Latin America.

The round was led by Allianz X, the investment arm of Allianz Group, with additional participation from major investors including:

• Tencent
• Stone Ridge Holdings Group
• Soros Fund Management
• D1 Capital Partners

Following the funding round, Ualá reached a valuation of $3.2 billion.

The company currently serves more than 11 million users across Argentina, Colombia, and Mexico, and plans to use the new capital to accelerate expansion across the region.

The latest developments highlight how Latin America continues to evolve as a key region for both cryptocurrency adoption and fintech innovation.

While Paraguay explores the possibility of turning seized mining hardware into a state-backed Bitcoin mining operation, Colombia is working toward a regulatory framework that could bring clarity to its digital asset sector. At the same time, companies like Ualá are attracting significant investment as they expand financial services across the region.

Together, these moves reflect the growing influence of digital finance throughout Latin America.