Paraguay President Vetoes Cryptocurrency Mining Regulation

  • The decree set a rate cap of 15% over the current industrial tariff.
  • Felix Sosa, head of Paraguay’s National Electricity Administration, expressed his opposition.

On Monday, Chief Mario Abdo Bentz From Paraguay a law that would have controlled the marketing of cryptocurrency mining and other digital asset operations. The president’s official account tweeted, “The executive branch objects to the bill that seeks to regulate cryptocurrency mining in the country.”

The decree states that the president’s veto of the law was primarily motivated by the fact that cryptocurrency is Mining It consumes large amounts of electricity while providing few actual functional benefits. For energy, crypto miners were supposed to pay more. However, as an “indirect stimulus” for the sector, the decree set a rate cap of 15% over the current industrial tariff.

request for recognition

Felix Sosa, President of the National Electricity Administration of Paraguay (spirit), expressed his opposition. He indicated that he would urge the president to reject parts of it.

According to the bill’s sponsor, Senator Fernando Silva Fassetti:

“The executive branch is washing its hands and not accepting mining as an industry that generates resources and sources of work, but it works in a gray area without being able to access the financial system or putting in place systems that guarantee the investor, the consumer and the state,”

Furthermore, the senator claims that the veto may limit investment and employment opportunities in the crypto-mining business. Moreover, he said that the administration lacks vision, which was another of his criticisms. Moreover, the president rejected the law that was approved by the Senate of Paraguay last month. Before making any further decisions, both houses of the Paraguayan legislature will consider the action that was overturned.

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