Paraguay fights illegal miners and more.

BeInCrypto comprehensive Latin Crypto Roundup brings you the most important news and trends of Latin America. We cover the latest updates and insights from the region's crypto scene with journalists in Brazil, Mexico, Argentina and more.

This week's roundup includes stories about Paraguay's intensified efforts against illegal Bitcoin miners, the growth of cryptocurrency users in Mexico, and more.

Paraguay has raised electricity prices for Bitcoin miners

Paraguay's National Electricity Authority (ANDE) has increased electricity rates for cryptocurrency mining companies from 9 to 16 percent. The move is aimed at curbing losses from illegal mining, which is estimated to cost the country up to 14 billion won (over $185,000).

On June 26, AED issued Resolution 49238 on electricity tariff revision. BAD Business Manager Hugo Fernandez announced to the newspaper Ultima Hora that there is an intensified effort against illegal cryptocurrency mining. It said that 72,823 KVA (kilovolt-ampere) was interrupted this year. Most power thefts affect the electrical system.

“The intervention represents a monthly loss to the institution of G. 14,720,458,825, unregistered active energy, which is added to the costs of the intervention and the fines that must be paid to the person responsible for the theft of electricity. This fact affects the proper operation of the electricity system,” explained Fernandez.

Read more: Is Crypto Mining Profitable in 2024?

In early June, National Vice President María Constancia Benítez de Benítez proposed a bill titled “Regulating the Regulation of Cryptomining in the Republic of Paraguay” that plans to regulate Bitcoin mining. She believes that mining is an opportunity for the country's economic growth.

BeinCrypto CEO Alena Afanaseva Speaks at Blockchain Rio 2024

The highly anticipated Blockchain Rio 2024 will take place from July 24 to 25 at EXPOMAG in Rio de Janeiro. This year's event will feature more than 300 experts from the new economy, including Beincrypto CEO Alena Afanaseva. They discuss the global trends in the new economy and the educational role of media institutions.

Other confirmed participants include Ariel Scaliter, co-founder and CTO of AgroToken, and Daniela Barbosa, director of the Hyperledger Foundation. Joao Aragao Pereira, technology and innovation expert at Microsoft, and pro-crypto Senator Carlos Portinho will participate. From digital finance to energy and agriculture, they offer their expertise in various sectors.

Read more: Top Crypto Events in 2024

AgroToken, Microsoft and Hyperledger have joined the DREX pilot platform consortium to highlight the importance of advanced blockchain applications. Blockchain Rio 2024 will also feature workshops, hackathons, knowledge trails, networking spaces, the Rio Digital Arts Gallery and immersive experiences. The business fair provides a platform for companies to present their solutions, to create new relationships and cooperation between participants.

The president of Bolivia lifted the ban on cryptocurrency amid a shortage of dollars

Bolivia has lifted its ban on the use of cryptocurrencies as a means of payment in response to the economic crisis caused by the dollar and oil shortages. President Luis Arce announced this decision to reduce the impact of the country's main source of income due to the decline in gas exports until 2021. .

From a macroeconomic perspective, allowing cryptocurrencies can attract foreign investment as these digital assets enable fast and secure global transactions. This seamless global trade potential can encourage both individual and corporate investors to break through traditional financial constraints and diversify their assets in emerging markets such as Bolivia.

Bolivia, a large recipient of foreign remittances, stands to benefit from this policy change. Cryptocurrencies provide a faster and cheaper way to transfer money, reducing transaction costs and increasing dollar flow.

Read more: Crypto Regulation: What are the Pros and Cons?

Adopting cryptocurrencies can boost e-commerce by allowing local businesses to sell products and services globally without traditional banking barriers. This expansion will help diversify Bolivia's revenue streams beyond gas exports.

Overall, Bolivia's decision to adopt cryptocurrencies could mark a turning point in solving economic challenges, offering new opportunities for investment, trade and financial stability.

3.1 million Mexicans now own Crypto, the report revealed

According to a recent report from Sherlock Communications, cryptocurrency adoption is on the rise in Mexico, with more than 3.1 million owners, which equates to 2.5% of the population. Earlier, the consultant identified Brazil and Argentina as regional leaders.

Crypto adoption growth in Mexico is high, in part due to its $63 billion exchange market with the United States. A single exchange, Bitso, did $4.3 billion last year.

“Legislators and authorities are silent about the tax situation of cryptocurrencies, and so far, no tax regulation in Mexico mentions anything about it. Some interpretations apply tax provisions and apply income tax rates of 30% to 35%, for each transaction in the country. 16% VAT (but 0% if the buyer is outside of Mexico) and 10% capital gains,” Sherlock Communications said.

Read more: Who will have the most Bitcoins in 2024?

The report also says that some companies have contributed to the development of cryptocurrencies in Mexico. Among them, the following stand out: Bitso, Volabit, Coinbase, Ripple, Banco Azteca, Banxico, Telefónica, Helium, Etherfuse, investment firms Exponential Capital, Lvna Capital and GBM, ConsenSys Academy and BIVA.

Sherlock Communications argues that there are reasons that drive the use of cryptocurrencies in Mexico, such as the Central Bank Digital Currency (CBCC), 40% of companies in the country have adopted blockchain technology, fintech legislation and, in fact, crypto at the mercy of the legislators in Mexico.

“Blockchain has a good reputation in Latin America. Latin Americans recognize that technology has positive effects beyond the business and financial sectors. Across the region, 61% of respondents in this sample agree that blockchain technology could change the way governments keep records, the report read.

As Latham's crypto scene continues to grow, these stories highlight the region's growing influence on the global market. Latin America has positioned itself as a key player in the tech world with Bolivia's recent efforts to boost digital assets in Mexico. Stay tuned for more updates and insights on next week's roundup.