Looks like the good times are over for Paraguayan crypto miners. The government has cranked up the power fees for crypto mining activities, leaving companies feeling the heat. According to Braiins Mining business developer, Nano Grijalba, the change in fees has made mining hosting a no-go in Paraguay.
It’s a real bummer because Paraguay used to be a prime spot for crypto miners. But now, miners are feeling the pinch from the government’s price hikes specifically aimed at the crypto industry. Nano Grijalba reports that the fee hike is over 50%, and it’s straight-up discrimination against bitcoin miners. The government’s excuse? The industry doesn’t create enough jobs.
What’s Grijalba’s Take On This?
Grijalba is not impressed with the government’s environmental logic either. He says that Paraguay is increasing fees for a clean industry like crypto mining while welcoming high-emissions industries with open arms and low fees. That’s just not right, and not sustainable for the future.
It’s not just the miners feeling the pain, though. Hosting activities in the country, like offering mining and maintenance services to others, are also taking a hit. The costs and margins of the international market make it impossible to offer those services.
3/7 La decisión de Paraguay de aumentar las tarifas para la minería de bitcoin, una industria limpia, mientras atrae industrias de alto emisiones con tarifas bajas, es cuestionable. Debemos priorizar el apoyo a industrias limpias para un futuro sostenible.
— Nano Grijalba (@nanogrijalba) January 23, 2023
The Paraguayan Congress passed a law to regulate crypto mining and exchange activities last year, but the president vetoed it. He said the industry uses too much energy and not enough labor. Congress tried to pass the law again without the president’s support, but it didn’t have enough votes and was shelved in December.
But all hope is not lost! Grijalba says that miners are currently working with authorities to reintroduce laws that will lighten the load on miners. No details on the new law yet, but Grijalba is calling for the normalization of crypto activities in the country to boost the economy.