Paraguay bans crypto law fearing energy, regulation, and fiscal problems 

Photo: Marcelo Mollaretti / Shutterstock

The Paraguayan government published a decree this week fully vetoing a bill that regulated cryptocurrency mining, recognized it as an activity of the industrial sector, authorized the issuance of licenses for crypto brokers, and granted tax exemptions. The Senate had approved the proposal in July. 

Among its list of caveats, the decree mentioned that crypto mining’s high demand for non-sustainable energy could jeopardize the country’s industry. Also, the government explained that crypto-related activities often require high investment but rarely create jobs, as they do not rely on a human workforce, meaning it would provide a negligible contribution to the economy. 

The government also considered fiscal and legal reservations made public by the Paraguayan Central Bank, which said the so-called “crypto law” would pose “fraud risks.” The bill will now return to the Congress floor and will be submitted to further discussions. 

On Twitter, opposition Senador Fernando Silva Facetti, one of the law’s backers, criticized the government’s decision, saying it rejects the regulation of “a sector that is begging for it.”