February 5, 2023

The President of Paraguay withdrew from the discussion the bill on cryptocurrency and mining

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The President of Paraguay withdrew from the discussion the bill on cryptocurrency and mining

The President of Paraguay, Mario Abdo, vetoed and removed from further discussion by parliamentarians a bill on cryptocurrency and mining, which was approved by Congress in June.

According to the media, one of the main reasons whythe country's President Mario Abdo (Mario Abdo) and a number of Congress deputies imposed a complete veto on this bill, due to the excessive preferences that are provided to the miners of cryptoassets, in contrast to the traditional business.

Abdo claimed disproportionate costs forsupporting the activities of mining companies and their role in the country's economy. He stressed that cryptocurrency mining is an activity characterized by “high electricity consumption but few jobs.”

In addition, the bill set limitson the fee that miners pay for the power supplied for operations. This is contrary to the National Energy Administration’s (ANDE) electricity tariff methods, which are cracking down on cryptocurrency farms illegally connected to the grid. The company previously reported that total losses from illegal connections approached $30 million.

It is noteworthy that in early October the SenateParaguay overruled the initial presidential veto by a majority vote and re-supported the bill to regulate cryptocurrencies, stating that its passage would benefit and revenue the country. However, now, amid the turbulence of the cryptocurrency market associated with the collapse of FTX, the Senate has not been able to muster the necessary number of votes to override the president's veto.