“Legal Bitcoin miners subsidize clandestine miners in Paraguay”

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Clandestine Bitcoin mining has the full repudiation of the fintech union in Paraguay. This is so since the operators that are regulated in that country practically subsidize, with their taxes, the illicit activities of their furtive counterpart. During a Space in illegal. According to Arriola, clandestine miners represent unfair competition compared to legal miners, since they do not pay taxes and other taxes for their operations, while regulated ones do. According to Arriola, regulated Bitcoin miners, forced to pay taxes to the State, “we are subsidizing stolen energy.” He assures that the money of legal companies “is sacrificed to comply with the rules of the State and we are being harmed by people who steal.” “Why should I protect people who steal? Thanks to my taxes, their thefts, their illicit and criminal activity are subsidized, and they are stealing from my clients with the same energy that I am paying,” he repudiated. Arriola, even though he recognizes that the Bitcoin network is free and can be processed by whoever wants it, also considers that the fact of stealing electrical energy to mine is an excuse» and anyone who commits this crime “must be prosecuted.” “We as a union cannot support people who steal energy, who are taking money out of our pockets, or from poor people, from the money that is used for education and for social plans that help people,” he said. He thus recalled that part of the money that enters the Paraguayan State through the energy industry, is allocated to social plans and other initiatives of attention to the less fortunate, in addition to educational programs for the youth of that country. In that sense, Arriola insisted, those who steal electricity to mine are only trying to take advantage of the network illicitly, to the detriment of the State and the Bitcoin mining industry In Paraguay. “Bitcoin is for everyone, yes, but that does not mean that you have to steal. It's not a Robin Hood realm. The law exists. If you don't want to pay for energy, create your own generation activity. You can use different fonts. It is an excuse here to steal energy. “It is a crime,” he concluded. Arriola also said he agreed with the Paraguayan State's position of “persecuting and punishing” clandestine miners. He considers, in fact, that the persecution of these bad actors It is the way to reduce this illicit activity.

Focus on the real problem

During the Space, Arriola also spoke about the anti-Bitcoin mining bill, whose discussion in the Paraguayan Senate was recently postponed for a month. He said that for a few weeks they have been talking with legislators about the “real problem that needs to be solved” in Paraguay. This, he points out, “is not Bitcoin mining itself,” but the theft of energy and overloading of the national electrical grid.

“We request that the Paraguayan Penal Code be modified so that everything related to Bitcoin mining is removed, which is already an industrial activity,” he indicated. As BitcoinDynamic reported this week, in addition to the postponement, a public hearing was called to discuss the bill. The session is scheduled for next April 23. From then on, it is expected that companies, regulators and other actors work on the formation of a new legislative proposal.

According to what Fernando Arriola perceives the bill will change, to focus more on the criminalization of energy theft, instead of prohibiting the practice of mining or the use of virtual assets. In that order of ideas, Arriola said that this 2024 They will present the bill “yes or yes” of the Chamber to regulate the cryptocurrency ecosystem in Paraguay. This is a proposal that has been announced since the beginning of last year, as reported by BitcoinDynamic. “We are at a working table with the Ministry of Industry and Commerce for the regulation of the mining part,” Arriola said.