“The legislative proposal aims, in short, to recognize cryptoactive mining as an industrial activity”says the decree.
In addition, it refers that the document endorsed by Congress seeks to establish that the rate for cryptoactive mining “does not exceed” 15% in relation to the current industrial rate.
Equallygrants permits of up to five years in favor of service providers and cryptoactive miners, as well as creating a specialized unit and establishing sanctions, among other measures.
The decree states, citing a concept from the National Administration of Electric Power (Ande), that cryptoactive mining “is characterized by its high consumption of electrical energy, with intensive use of capital and low use of labor.”
For this reason, it considers that it is appropriate to characterize cryptoactive mining “as electro-intensive consumption and not as industrial consumption, because it does not generate added value.”
Along the same lines, the Ministry of Industry and Commerce warns in the decree that the activities that the bill seeks to promote require “a significant amount of energy that can compromise the development and expansion of an inclusive and sustainable national industry.”
He even warns that if Paraguay wants to intensify crypto mining today, “in the next four years it will be forced to import electricity.”
In turn, the Paraguayan Central Bank (BCP) points out that cryptocurrencies “are not backed by any monetary authority and, therefore, their custody is not supervised.”
They also do not have protection or security mechanisms as other assets offer, adds the issuer, adding that “cryptoactives do not fulfill basic functions of money and constitute high-risk investments.” EFE
Source: Ambito
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