Paraguayan Chamber of Fintech Supports Controls on Illegal Crypto Mining

The Paraguayan Chamber of Fintech uploaded a statement to social networks in which it expressed its full support for the procedures undertaken by the government in an attempt to crack down on illegal crypto mining spaces. The FinTech guild has celebrated and advocated for the controls promoted by the National Energy Administration (ANDE) to spaces that operate clandestinely. From the aforementioned sector, they defended correctly declared mining.

Read more about crypto mining in Paraguay and find other important business news with the Born2Invest mobile app.

The entity assured that, through an irregular exercise, these crypto mining enterprises make use of everyone’s energy.

“We promote the formality and regulation of the industry in order to promote innovation and growth. We welcome the interventions and raids that are being carried out against irregular companies that are illegally benefiting from one of our most precious assets as a country, which is energy.”

The most recent operation was led by the prosecutor Edgar Benítez. It was a raid in rural premises located in the company Capiíbary, in Itakyry, Department of Alto Paraná. There they found approximately 18 containers behind the house. They were hiding the machines for mining cryptocurrencies, which used approximately four megabytes of electrical energy.

The signatory organization even offered help to be able to track down the businesses set up without declaring their activity:

“We have made ourselves available to collaborate and work together with the competent authorities regarding these raids. We repudiate the illicit acts committed against ANDE and to the direct detriment of all the citizens of the Republic. We urge all members who know of irregularities by unscrupulous persons to report them.”

In another recent episode, agents of the National Police (belonging to the Directorate Against Economic and Financial Crimes) carried out a raid in Coronel Oviedo, Department of Caaguazú. As reported by BeInCrypto, the raid was accompanied by the prosecutor of Unit 5, Gabriel Segovia. ANDE personnel also participated, in charge of legal advisor Víctor Montanaro.

The procedure was carried out in compliance with the search warrant signed by the Judge of Guarantee 2 of Coronel Oviedo, César Narváez, on the alleged fact of undue theft of electric energy.

Regulation of cryptocurrencies and crypto mining in Paraguay

The project to regulate cryptocurrencies in Paraguay suffered a hard setback at the beginning of December 2022. The initiative was shelved, after a resounding 39 to 9, by the Chamber of Deputies of that country. That seemed to be the final destiny of the proposal, which was approved by the legislative body, vetoed by President Abdo Benítez, and recovered by the Senate.

But in late January, the head of the Blockchain Division of the Paraguayan Fintech Chamber, Fernando Arriola, confirmed to BeInCrypto the sending of a new document to Parliament.

“We want the support of the state. I think the path is to demand that the legislation that passes follows along the same lines with the regulatory trend of countries that provide correspondent financial services to our country, in addition to incorporating the legislative innovations recently incorporated by India, Estonia, and Singapore.”

The project that the Fintech Chamber will present seeks to reach a consensus with the different governmental actors. That is to say, they intend to go to a parliamentary vote adjusting all the pegs, without the risk of failing again.

The president of the National Electricity Administration (ANDE), Félix Sosa, assured that a project without consensus would cause millionaire losses to the entity. This is due to the high energy consumption demanded by mining activity. The office is a key player in the discussion and, for those promoting the new text, it is essential to have its support.

By the end of 2022, a special price was defined for the intensive consumption group. In that set, they included crypto mining, data centers, and blockchain. According to the resolution of Paraguay’s main energy agency, cryptocurrency miners will have to pay rates between 6% and 58% higher than those established. This was resolved in order to balance the tariff regime.

__

(Featured image by QuinceCreative via Pixabay)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in be [in] crypto, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.