Paraguay to Come Up with a Special Fee for Cryptocurrency Miners

Paraguay to Come Up with a Special Fee for Cryptocurrency Miners

August 4, 2022 0 By Jeanine Sanchez

Paraguay’s National Power Administration is asking to set up a special fee for crypto mining operations. This was contained in a project sent to the country’s economic team. 

Miners’ Sharp Practices

The power administration has stopped supplying power to mining operators as a result of the losses it incurred. These operators evaded paying for power since they were connected illegally.

The power administrators now want to connect crypto mining operators legally but charge them specially. The decree sent by the company to Paraguay’s economic team proposes collecting payments in US Dollars in advance. The bill of crypto mining operators will also be subject to an annual amendment.

The proposal equally suggests creating a new billing arrangement for related activities. The head of Paraguay’s Eastern region’s power division said an inspection of crypto mining operations was conducted. The research revealed sharp practices that caused the loss of over $400,000 every month.

The company decided to cut power from the operators till there is a new billing regime to address those entities. The issue is already being talked about in the country’s Senate.

Crypto mining activities have been experiencing a boom in Paraguay as a result of cheap power bills. The power administration of Paraguay actually charges cheaply for power. Many crypto mining companies have indicated their interest in setting up their operation in the country.

A Safe Haven to Mine Crypto

The interest in Paraguay is important to miners, especially after the ban placed on mining in China. This made mining operators relocate from China in search of new places to operate.

The Senate passed a bill in the month of July that will clarify crypto mining operations if it gets approved. The law is going to establish that the power supplied to miners will be subsidized. But then, it has to be set at a 15% rate higher than the bill of other industries.

The National Power Administration President, Felix Sosa, said the company believes it should respond to a cost structure. This will make it viable for installing a power supply. 

Sosa also said that he will suggest a semi-veto of the proposed bill as a result of the proposal it made for billing crypto miners.

Crypto miners have been facing a lot of trouble across the globe as a result of power expenses. But some countries are setting resources aside to power crypto mining activities such as in El Salvador and Dubai.