Paraguay's President Rejects Crypto Mining Bill

Paraguayan president, Mario Abdo Benítez, has vetoed a bill that would have regulated various digital asset activities, including the commercialization of crypto mining in the country.

The primary reason behind the president’s decision against the bill was that crypto mining uses high amounts of energy but brings relatively thin employment benefits.

The details were given in a decree tweeted by the President. ”Fixed mining of virtual assets requires the use of intensive and massive electrical energy and great capacity of energy production, which the country has,” read the decree. “Nevertheless, it does not generate a lot of labor like any other sector industry.”

Per the bill, crypto miners would have paid higher electricity rates. The rates, however, were capped at 15% above the current industrial tariff, a clause the decree described as an “indirect incentive” to the industry.

Both chambers of the Paraguayan legislature will however evaluate the vetoed bill before any further decision.