Paraguay President Mario Abdo Bentez rejects proposed crypto mining regulation

A law that would have regulated crypto mining and transformed it into an economic activity was rejected by the president of Paraguay, Mario Abdo Bentez. The heavy use of electricity appears to be the reason.

Paraguay has taken several important advances in the world of digital assets over the past few months. According to some reports, the South American nation may adopt El Salvador’s policy and make bitcoin official tender. A law that may have regulated and promoted crypto mining and trading in the region was adopted by the Senate at the end of 2021.

Paraguay president vetoes the proposal

The measure that aimed to regulate crypto mining and allow the “commercialization, intermediation, exchange, transfer, custody and administration” of crypto operations was totally vetoed by the president of Paraguay.

He said that because cryptocurrency mining is still in a gray area and consumes a lot of energy, it could damage Paraguay’s national electricity grid. He stated:

“The Presidency opposed the regulation of a sector that asks to be controlled and destroys the possibility of the arrival of new investors and the formalization of hundreds of small and medium-sized companies that live in and depend on this industry.”

However, Bentez pointed out that the crypto market does produce resources and offers a lot of people job opportunities.

It’s important to note that the bill was approved by the Paraguayan Senate in July along with a proposal to tax cryptocurrency miners at a 15% rate, as TheCoinRise reported. However, the President was given the deciding vote.

The nation’s deputy for Paraguay, Carlos Antonio Rejala Helman, stated last summer that the administration will concentrate its efforts on a “important project” including Bitcoin and PayPal. Rumors claim that the country wanted to make Bitcoin an official means of payment within its borders. The nation, however, gave up on those goals. The well-known economist and opponent of the cryptocurrency sector, Steve Hanke, was one of several who opposed the decision.