"Cryptocurrencies were created for that": Paraguay toughens its stance on cryptocurrencies and sparks reactions

For best results when printing this announcement, please click on link below:The Superintendency of Securities informed investors and the general publicthat cryptocurrencies are neither registered nor authorized by this entity orby the Central Bank of Paraguay (BCP). It also reminded that they do not havelegal tender status in the country nor state backing."Luckily, cryptocurrencies don't need your approval to be used hahaha," "Justlike the dollar, it's not legal tender here nor backed by the country…that's why its price is free in the market, right?" "Hahaha, what's next?McDonald's announcing that it doesn't officially back my homemade burger?" and"Cryptocurrencies were created for that," were the most notable comments on Xunder the Superintendency's post announcing Circular No. 006/2025.The statement explicitly notes that since their value depends solely on thetrust that users place in them, cryptocurrencies constitute high-riskinvestments, with the possibility of losing the entire invested capital.It also advises citizens to carefully verify the legitimacy of investmentoffers and their potential risks. Similarly, it urges against dealing withindividuals or entities conducting public offerings without the properauthorization, regulation, and supervision of the Superintendency.CautionParaguay has taken a cautious stance on cryptocurrency activities,particularly regarding the risks and challenges they pose. State entities haveshown firmness in regulating this sector, with a special focus on controllingthe energy consumption linked to crypto mining.In this context, the National Electricity Administration (ANDE) hasintensified efforts to reduce energy losses associated with illegalcryptocurrency mining. According to official data, the country recorded anaverage total loss of 26% until 2020. However, since 2021, these levels havebegun to rise, reaching a peak of 28.5% in 2023.In response to this situation, the Paraguayan government seeks to mitigate theimpact of crypto mining on the electrical system, strengthening supervisionand sanction measures to prevent irregularities in energy consumption.