Paraguay President Vetoes Crypto Regulation Law

The bill was approved by the National Senate in July as low energy costs continue to boost mining activities in the country.

Paraguay's President Mario Abdo Benítez on Monday vetoed a bill to recognize cryptocurrency mining as an industrial activity. He said the high electricity consumption of mining could hamper the expansion of a sustainable national industry.

The decree stated that cryptocurrency mining was capital-intensive with low labor usage, and therefore would not generate added value comparable to other industrial activities. Around the world, cryptocurrency is one of the biggest job creators. LinkedIn's economic chart shows that the listing of crypto and blockchain jobs grew by 615% in 2021 compared to 2020 in the United States.

According to the bill's sponsor, Senator Fernando Silva Facetti, the law was intended to promote cryptocurrency mining through the use of excess electricity, but the Paraguayan government chose to ignore the activity in the country:

1# Hoy recibimos de @PresidenciaPy el VETO TOTAL a Ley "Que regula la minería, comercialización, intermediación, intercambio, transferencia, custodia y administración de #CRIPTOACTIVOS" ignores the existence of this activity that no longer works in the sombra normativa. (abro hilo)

The Paraguayan Senate finally approved the proposal on July 14, recognizing cryptocurrency mining as an industrial activity. They established a 15% tax on its related economic activity...