Senate passes bill to regulate bitcoin mining and trading of cryptocurrencies in Paraguayan
A bill that regulates the mining and trading of cryptocurrencies was passed by the Paraguayan Senate on Thursday.
The bill, which aims to tap into Latin America's energy surplus, will be discussed by the Chamber of Deputies in 2022, Senator Fernando Silva Facetti said on Twitter
According to the bill, bitcoin is not going to become legal tender in Paraguay. In July, Bitcoin Magazine had the opportunity to interview Paraguayan Congressman Carlitos Rejala about the draft bill.
The legislation revealed an increased degree of regulatory security from the country's regulators regarding bitcoin mining, as well as an overall objective of providing investor protection from bitcoin service providers.
In addition to requiring mining users to obtain a license for industrial electricity consumption, the bill also stipulates that anyone offering crypto-related services, like cryptocurrency trading and custody, should be registered. Following the approval, the entity would still need to seek a mining license in order to mine bitcoins.
A bill proposed by the Ministry of Industry and Commerce of Paraguay supports and regulates crypto mining within the country, with help from the National Securities Commission, the Anti-Money Laundering Office, and the National Electricity Administration. The bill would allow bitcoin miners to access Paraguay's surplus of thousands of megawatts of electricity if it were to be regulated.
At $0.05 per kilowatt-hour, Paraguay has the lowest electricity costs in the region, according to congressman Carlos Rejala. The country's energy production is almost entirely hydroelectric, he added.
CBW - External Analyst