Despite ongoing efforts to crack down on illegal mining operations, the Paraguayan Congress might soon vote on a new bill aimed at regulating Bitcoin mining.
The bill, proposed by lawmaker María Constancia Benítez, is said to be business-friendly and emphasizes the potential of Bitcoin mining to drive economic and technological progress in Paraguay.
Will Bitcoin Mining Finally Be Regulated in Paraguay?
Before Benítez’s plan can be voted on by her fellow lawmakers, it must pass the committee stage.
It is noteworthy, nevertheless, that this is MPs in Paraguay’s fourth attempt at regulating the industry with Benítez’s draft bill.
A 2022 private member’s bill that mining companies and their attorneys co-authored was approved by both chambers but was vetoed by the president.
The current bill, however, indicates that legislators are still eager to make Paraguay a significant participant in Bitcoin mining.
According to Benítez’s draft law, Bitcoin mining can “attract foreign investments and generate new jobs.” The bill’s language is as follows:
“The potential for cryptocurrency mining to draw both domestic and foreign investment and create jobs makes it imperative to enact laws governing it. Enabling Paraguay to become a technologically advanced center in the Latin American region is the result of this action.”
Furthermore, according to the measure, operators would be able to enter “an environment of legal and economic security” if the nation regulated Bitcoin mining.
Benítez asserted that the aforementioned factor was “critical to the ongoing growth” of the Bitcoin mining industry.
AML and CFT Measures Are Proposed by Bill
The bill attempts to force the business to adhere to anti-money laundering and anti-terrorism funding regulations.
The proposed bill also includes provisions to ensure that Bitcoin miners adhere to strict environmental regulations, particularly by utilizing renewable energy sources with a focus on hydroelectric power. Given that Paraguay relies heavily on hydroelectricity for almost all its power needs, this aspect of the bill is likely to gain widespread support.
Paraguay’s abundant hydroelectric resources have attracted global mining companies, which have already established data centers near major dams. During rainy seasons, these dams generate surplus energy, which miners purchase, benefiting both parties.
However, the bill is expected to encounter opposition, especially from power companies. They blame illegal cryptocurrency mining for disruptions to their networks, citing instances where miners have unlawfully connected their rigs to local grids. Recent police actions, including the seizure of around 3,000 Bitcoin ASIC miners, reflect efforts to combat this issue.
June 2024, Cryptoniteuae
