A new Bitcoin mining regulation bill in Paraguay has been introduced by lawmaker María Constancia Benítez, while there are ongoing efforts to crack down on illegal mining operations in the country.
Not the first Bitcoin bill
Benítez’s bill, reported by the local news company Criptonoticias, highlight the potential economic and technological benefits of the Bitcoin mining industry for Paraguay, showing how Bitcoin mining could support economic growth and technological advancement within the nation.
But before it can be voted on by fellow lawmakers, the bill must first pass through the committee stage.
This draft marks the fourth attempt by Paraguayan parliamentarians to regulate the Bitcoin mining sector, as a previous bill from 2022, which had the support of mining firms and their legal teams, was approved by both legislative houses but ultimately vetoed by the President.
The introduction of this new bill indicates a continued interest among lawmakers to position Paraguay as a key player in the global Bitcoin mining industry.
New jobs and clean energy
According to the draft law, mining could play a central role in attracting foreign investments and creating news jobs, and the bill argues that regulating the industry is the best way for establishing Paraguay as a technologically advanced hub in Latin America.
Benítez’s proposal suggests that legal and economic security for Bitcoin mining companies is awaited by the industry, and will lead for sustained growth of the sector.
“It is of fundamental importance to legislate crypto mining, as it has the potential to attract foreign and domestic investments and boost employment. Doing so will position Paraguay as a modernized, technological hub in the Latin American region.”
The legislation also will implement anti-money laundering and counter-terrorism financing measures within the Bitcoin mining industry, while it also seeks to enforce strict environmental regulations, promoting the use of renewable energy sources.
This environmental focus aligns well with Paraguay’s current energy infrastructure, which is heavily reliant on clean and cheap hydroelectric power.
Don’t be illegal miner
Despite its potential benefits, many experts warn that the bill is likely to face criticism, because some power companies in Paraguay have attributed network disruptions to illegal crypto mining activities, where miners have connected their equipment to local power grids without authorization, causing outages.
This has led to a series of police raids, resulting in the seizure of more than 3,000 Bitcoin ASIC miners.
The proposed legislation wants to address these issues by bringing Bitcoin mining operations into a regulated environment, with legal and environmental standards to apply.
In this way, by leveraging its abundant hydroelectric power, Paraguay could attract more legitimate mining operations, boosting the country’s economy.
Have you read it yet? Germans divided on digital euro
Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.
