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- A new bill in Paraguay aims to regulate Bitcoin mining to promote economic and technological development in the country.
- The proposed law emphasizes the importance of using renewable energy for Bitcoin mining in Paraguay.
A new bill has entered the Congress of Paraguay aiming to establish a legal framework for Bitcoin mining in the South American country. This marks the fourth proposal targeting digital mining regulation. The bill, presented by Congresswoman María Constancia Benítez, highlights Bitcoin mining’s potential to foster economic and technological development in Paraguay, as we wrote it in CFN previously.
The proposal emphasizes the use of renewable energy for Bitcoin mining and seeks to ensure compliance with environmental regulations. It also aims to implement a transparent and efficient regulatory framework.
Diputada presenta nuevo proyecto de ley para regular la minería de #Bitcoin en Paraguay
La diputada María Constancia Benítez de Guairá (departamento donde hay presencia de mineros de #Bitcoin) presentó el proyecto de ley “QUE REGULA LA CRIPTOMINERÍA EN LA REPÚBLICA DEL… pic.twitter.com/pdQPXoEUtn
— Joaquin Morinigo 🇵🇾🏴☠️⚡️ (@criptoboi) June 4, 2024
The need for transparency is underscored by recent discoveries of corruption linked to illegal mining activities in Paraguay. For instance, authorities recently uncovered about 3,000 hidden Bitcoin ASIC miners near the National Electricity Administration (ANDE), which were allegedly consuming electricity illicitly.
“It is of fundamental importance to legislate cryptomining, as it has the potential to attract foreign and domestic investment, generate employment and position Paraguay as an up-to-date and technological hotspot in the region. By regulating this activity, an environment of legal and economic security is fostered, which is essential for sustained development.” – Bill to regulate Bitcoin mining in Paraguay.
The new bill stresses that Bitcoin mining can attract foreign investments and create both direct and indirect jobs. According to Benítez, regulating cryptocurrency mining is crucial as it has the potential to draw both national and international investments, generate employment, and position Paraguay as a technological hub in the region. The bill argues that regulation would foster a secure legal and economic environment essential for sustained development.
The legislative proposal also focuses on curbing energy theft, a growing issue since the beginning of the year. This has led to the intervention of several illegal digital mining farms and the seizure of over 6,000 Bitcoin miners. Benítez’s proposal indicates that illegal and clandestine mining operations result in significant losses for the state and jeopardize the stability and security of the electrical supply.
Moreover, the bill aims to prevent money laundering and terrorism financing, activities allegedly associated with cryptocurrency mining. To this end, the regulation includes a regime of fines and suspensions for non-compliance.
“A robust regulatory framework will place Paraguay at the forefront of technological innovation and increase its competitiveness at a global level,” highlights Congresswoman Benítez’s bill. “This will attract technology companies and experts, fostering an ecosystem of innovation and development,” it adds.
The current lack of regulation, according to the proposal, promotes opacity and a lack of accountability. Implementing a clear regulatory framework would compel crypto miners to operate transparently.
A robust regulatory framework, the proposal suggests, would place Paraguay at the forefront of technological advancement, enhancing its global competitiveness. This would attract technological companies and experts, fostering an environment conducive to innovation and development.
This bill is part of a broader legislative effort, as there are three other proposals regarding Bitcoin mining in Paraguay. These include an anti-mining law aiming to ban the industry and all activities related to Bitcoin. This proposal is still pending debate in the Paraguayan Congress.
