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National Power Administration Will Propose A Special Cryptocurrency Mining Fee In Paraguay

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National Power Administration Will Propose A Special Cryptocurrency Mining Fee In Paraguay

The National Power Administration of Paraguay has proposed to set a special mining fee for cryptocurrency mining operations in a decree project directed to the national economic team. Due to the immense losses the organization has faced, it has stopped supplying energy to some mining operations that were evading the payment of power bills, being illegally connected to the grid.

National Power Administration to Change Power Billing Structure for Mining Operations in Paraguay

The National Power Administration is proposing a new way of charging cryptocurrency companies for the electricity used in mining operations in Paraguay. The company has brought a new decree proposal to the national economic team that would collect the payments for these services in advance in U.S. dollars, and with an annual adjustment. This proposal would also create a new billing group for these activities.

The head of the East Regional Management Division, Alfredo Argüello, stated that while inspecting different cryptocurrency mining operations, the group was able to detect irregularities in some of them that led to the loss of more than $400,000 monthly. Some of these irregularities included direct connections, bypass connections, and modified power meters, Argüello informed.

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As a result of this, the company is stopping the power supply to these companies until a new power billing structure is approved for these entities, an issue that’s already being discussed in the Paraguayan senate.

Cryptocurrency Laws Ready

The cryptocurrency mining activity in Paraguay has experienced a boom due to the cheap fees that the power companies are actually charging for electricity. Several companies have expressed their interest in establishing operations in Paraguay after the Chinese mining ban, which forced many mining operators to leave the country and search for new lands for carrying out their activities.

The Senate passed a bill in July that, if approved, will bring clarity to these operations in the country. The law, which is still waiting to be sanctioned by the Paraguayan president, establishes that the energy provided to mining operations will still be subsidized, but will have to be set at a rate 15% higher than what other industries pay currently.

About this, the president of the National Power Administration, Felix Sosa, stated:

At that point, we believe that it has to respond to a cost structure so that it is viable for the installation of electrical energy supply.

Furthermore, Sosa stated that he will propose a partial veto of this bill due to the proposals it makes regarding power billing to these companies.

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What do you think about the new proposal of the National Power Administration in Paraguay? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Chamber Of Representatives In Paraguay Advances Crypto Bill

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Chamber Of Representatives In Paraguay Advances Crypto Bill

Cryptocurrency regulation in Paraguay is progressing steadily, as a crypto bill introduced in December has been approved by the Chamber of Representatives in the country. The bill, which contains definitions and rules for cryptocurrency mining, one of the hot topics in Paraguay due to the cheap electricity costs, will be passed to the Senate to be discussed.

Paraguay Advances Crypto Bill

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Latam countries are taking cryptocurrencies in a more serious light, and are now working to approve cryptocurrency legal frameworks. This is the case of Paraguay, a country that has been traditionally seen as a mining haven by cryptocurrency mining companies due to the cheap electricity costs the country features. Now, a crypto bill project that seeks to bring more clarity to these companies has been approved in the Chamber of Representatives of Paraguay.

The bill, which was approved in December last year by the Senate, was approved with a voting record of 41 votes in favor and 11 votes against. Carlitos Rejala, one of the biggest supporters of the bill, celebrated this development on social media, stating:

A big leap for bitcoin in Paraguay. The second chamber of Congress just approved the bill proposal for creating a legal framework for bitcoin mining. 100% Hydroelectric renewable power.

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Regulation Specifics

The new bill stipulates that cryptocurrency exchanges will now be regulated as entities, having the obligation of registering their operations as virtual asset service providers to SEPRELAD, the money laundering watchdog of the country. P2P traders will also have to register their operations because the rule applies to any person or company that is going to trade, manage, broker, exchange, or store crypto assets for third parties. This also includes crypto custody companies.

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Cryptocurrency mining will also benefit from this bill, as it would regulate matters related to the energy supply and the tariffs that the government will be able to collect, clarifying an activity that is still not regulated in the country. The bill transfers these responsibilities to ANDE, the National Electricity Administration, which will establish the power rates complying with the mandate in this bill, which says these cannot be over 15% of the industrial rates.

The bill will now be passed again to the Senate of the country, which will have up to 90 days to discuss the contents and propose changes to the structure of the document. Then, if approved, the bill will be ready for presidential sanction.

What do you think about the newly approved Paraguayan cryptocurrency bill? Tell us in the comments section below.

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Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

Advertisement

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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