Paraguayan Cryptocurrency Law Shelved After Presidential Veto Bitcoin Regulation News

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The Cryptocurrency and Mining Law that the Paraguayan Congress passed in June was finally scrapped on December 5. The document, which was intended to bring order to crypto mining and exchange activities in Paraguay, was ultimately scrapped after it failed to secure the necessary votes to overturn the presidential veto it received.

Paraguayan Crypto Law Abandoned After Support Declines

The Paraguayan cryptocurrency law that was introduced in Congress in 2021 was eventually scrapped after it failed to receive the support it needed in the Chamber of Deputies. The project, which was vetoed in September by President Mario Abdo, did not gather the necessary votes to reject the veto.

The veto had previously been defeated by the Paraguayan senate, which sought to approve and pass the law without presidential support. The veto had the support of the Committee on Industry, Commerce, Tourism and Cooperatives; while the Committees for Economic and Financial Affairs and the Fight Against Drug Trafficking, Related Activities and Serious Illicit Activities rejected the request.

Some MPs questioned the veto, saying the issue of cryptocurrencies needs to be studied and regulated because of its importance. In this vein, MP Sebastian Garcia criticized this result, stating that with this decision, the subject of cryptocurrency will remain in “absolute informality”.

Reasons to support the veto motion

One of the main reasons cited by President Mario Abdo and other MPs for exercising a full veto on this bill has to do with the decisions he makes regarding the power given to cryptocurrency miners. Abdo said cryptocurrency mining is an activity characterized by “high electrical power consumption, but low labor usage.”

Additionally, the law has established limits for the fees that crypto miners pay for energy supplied to their operations. This would go against the method of determining electricity tariffs by the National Electricity Administration (ANDE), an organization that also backed the veto measure after finding several connected cryptocurrency farms. illegally to the power grid.

Deputy Arnaldo Samaniego argued that rejecting the veto motion would put ANDE in a delicate situation, facing potential losses of up to $30 million. Deputy Jose Rodriguez also supported this position, explaining that the organization could not operate with losses derived from this law.

This development puts cryptocurrency regulatory efforts in Paraguay back to square one, with lawmakers once again expected to propose and discuss a hypothetical new cryptocurrency law.

What do you think of the final fate of cryptocurrency and mining law in Paraguay? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late in the game, entering the cryptosphere when the price spike happened in December 2017. Having a background in computer engineering, living in Venezuela and impacted by the cryptocurrency boom at the social, it offers a different point of view. on the success of crypto and how it helps the unbanked and underserved.

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