Paraguay’s government has vetoed a bill seeking to regulate cryptocurrency in the country.
The bill which proposed the issuance of a virtual asset mining license to crypto miners also sought to establish a new government authority to oversee mining operations.
This agency will also be able to levy punishment on non-compliant actors and anyone that failed to register.
As reported by ‘TheStreet’, “Paraguay’s President Mario Abdo vetoed a proposed crypto regulation bill entirely, scuppering long-awaited hope that the country might provide a regulatory framework for the commercialization of digital assets”
According to the report, Abdo objected to the concept of crypto mining, citing high energy consumption, low use of labor, and intensive depletion of capital.
“Abdo said that he preferred to limit the electricity rate for mining at 15% above the current industrial rate and said that he wanted to avoid setting up the country for future failure. “If Paraguay wants to intensify crypto mining today, in the next four years it will be forced to import electricity,” his office stated.