Paraguay President Vetoes Crypto Mining Regulation

Paraguay President Vetoes Crypto Mining Regulation
  • The decree set a ceiling on the rates at 15% over the present industrial tariff.
  • Félix Sosa, head of Paraguay’s National Electricity Administration voiced his opposition.

On Monday, President Mario Abdo Bentez of Paraguay rejected a law that would have controlled the commercialization 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 crypto mining in the country.”

According to the decree, the president’s decision to veto the law was primarily driven by the fact that cryptocurrency mining uses a lot of electricity while offering few real job benefits. Crypto miners were expected to pay more for power. However, as an “indirect incentive” to the sector, the decree set a ceiling on the rates at 15% over the present industrial tariff.

Demand For Recognition

Félix Sosa, head of Paraguay’s National Electricity Administration (ANDE), voiced his opposition. He indicated that he would urge the president to reject parts of it.

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

“The executive washes its hands and does not accept mining as an industry that generates resources and sources of work but operates in a grey area without being able to access the financial system or establish regulations that guarantee the investor, the consumer, and the State,”

Furthermore, the senator claims the veto might limit chances for investment and employment in the crypto mining business. Furthermore, the administration, he said, lacked vision, which was another of his criticisms. Moreover, the law which got recently approved by the Paraguayan senate last month was rejected by the president. Before making any further decisions, both houses of the Paraguayan legislature will consider the vetoed measure.

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