Paraguay Lawmaker Introduces Fresh Initiative to Regulate Bitcoin Mining
A new bill aiming to regulate Bitcoin (BTC) mining in Paraguay is currently under consideration in the Paraguayan Congress, despite the ongoing efforts to crackdown on illegal mining activities. According to reports from the Spanish-language media outlet Criptonoticias, the bill was proposed by lawmaker María Constancia Benítez.
Described as pro-business, the bill emphasizes the potential of the Bitcoin mining industry to boost the economic and technological growth of Paraguay. Benítez’s proposal will need to undergo the committee stage before it can be voted on by her colleagues in Congress.
This marks the fourth attempt by Paraguayan lawmakers to regulate the sector, with a previous bill in 2022, authored by mining companies and their legal representatives, gaining approval from both houses only to be vetoed by the President. Despite this setback, the introduction of the new bill indicates a continued interest in establishing Paraguay as a significant player in BTC mining.
Benítez’s draft law highlights the benefits of Bitcoin mining in attracting foreign investments and creating employment opportunities. The proposed legislation aims to provide a legal and economic framework that offers stability and security for operators in the industry, which Benítez believes is crucial for the sustainable growth of the BTC mining sector.
Furthermore, the bill includes provisions for anti-money laundering and counter-terrorism funding measures, as well as regulations to ensure BTC miners adhere to environmentally friendly practices by utilizing renewable energy sources. Given that Paraguay relies heavily on hydroelectric power, global mining companies have already taken advantage of surplus energy from dams, especially during rainy seasons.
Despite the potential benefits, the bill is expected to face opposition, particularly from power companies who have experienced disruptions due to illegal crypto mining activities. Recent police operations have resulted in the seizure of thousands of Bitcoin ASIC miners that were illegally connected to local grids.
The future of Bitcoin mining regulation in Paraguay remains uncertain, but the introduction of this new bill signals the government’s commitment to creating a favorable environment for the industry’s development.
