Paraguay Approved The Legal Framework For The Regulation of Mining And Cryptocurrency Trading

Paraguay's Chamber of Deputies on Wednesday approved by a vote of 40 to 12 a bill regulating the mining and trading of cryptocurrencies. The country's Senate had already adopted a similar law in December, and now the bill will return to this body with amendments by the Chamber of Deputies. Once the Senate approves the modifications, the pending law will go to the executive branch, which has yet to say whether it will sign or veto it.

Carlos REJALA, one of the bill's authors, said last year that the law is aimed at attracting international miners to Paraguay, where electricity rates are among the lowest in Latin America, around 5 cents per kilowatt-hour. If the bill becomes law, individual and corporate miners will need to apply for an industrial electricity consumption permit and then apply for a license. A registry will also be created for individuals and legal entities who intend to provide services for trading or custody cryptocurrencies for third parties, the concept of exchange is not included.

The bill also met with strong opposition. Speaking against the bill, Congressman Tadeo ROJAS argues that the budget committee of the Chamber of Deputies does not recommend passing it. He noted that the positive impact on job creation would be low compared to the energy consumption needed for crypto mining.

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