As we reported in July, the senate in Paraguay had then passed a bill introducing the crypto legal framework to the Latin American country. However, president Mario Abdo Benítez has now decided against ratifying the part of the bill that would have recognized crypto mining as an industrial activity.
If the senate-approved bill had been ratified, crypto miners would have been regulated by the country and required to apply for a mining license. Plans for specialized crypto law enforcement and anti-money laundering institutions were also drafted.
According to Benítez’s decree, however, crypto mining wouldn’t have generated sufficient value to justify increased energy consumption.
Over the past 12 months, investments in the Paraguayan industry have increased by 220%, leading to higher energy expenditure. Unfortunately, intensifying crypto mining activities in the country would have Paraguay importing electricity in a few years.