Paraguay Rejects Crypto Law, Crypto Community Pushes for Education and Regulation

“crypto law” was rejected by lawmakers on monday, ending months of debate on the proposed legislation. congressman carlos rejala and senator fernando silva facetti drafted the bill, which sought to cap electricity rates for mining operations and tax the industry. the blockchain association of paraguay welcomed the veto, while canadian mining giant bitfarms announced plans to expand to paraguay with a five-year lease and power purchase agreement.

Bill was vetoed in august by president mario abdo benitez and rejected by the chamber of deputies (lower house) on monday. the crypto mining industry operates in a legal gray area in the latin american nation, and the crypto community is working hard to give legislators a better idea of how the industry should be regulated.

Benitez argued that mining bitcoin used too much energy and brought small employment benefits to the country, leading him to reject the proposed legislation. paraguay is attractive to bitcoin miners due to its cheap electricity, but the bill was ultimately shelved. decrypt reached out to bitfarms to ask how the scrapped law affected their plans but did not receive an immediate response.

By Evey Lovelace

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