Paraguay Official Introduces Fresh Initiative to Regulate Bitcoin Mining
The Paraguayan Congress is considering a new proposal to regulate Bitcoin (BTC) mining, despite the ongoing efforts to crackdown on illegal mining activities. According to reports from Criptonoticias, the initiative was put forth by lawmaker María Constancia Benítez.
The bill seems to be in favor of businesses, emphasizing the potential of the Bitcoin mining industry to drive economic and technological progress in Paraguay.
Will Paraguay Finally Implement Regulations on Bitcoin Mining?
Benítez’s proposal must first pass through the committee stage before it can be voted on by her colleagues. It is worth mentioning that this is the fourth attempt by Paraguayan lawmakers to regulate this sector.
In 2022, a bill proposed by private members, in collaboration with mining companies and their legal representatives, was approved by both chambers but was later vetoed by the President. However, the introduction of this new bill indicates that lawmakers are still eager to establish Paraguay as a significant player in BTC mining.
Benítez’s proposal highlights that Bitcoin mining has the potential to attract foreign investments and create new employment opportunities. The bill emphasizes the importance of bringing operators into a framework of legal and economic stability, which is crucial for the sustainable growth of the BTC mining industry.
The proposal also includes measures for combating money laundering and terrorism funding within the industry. It suggests that BTC miners should adhere to strict environmental regulations, ensuring the use of eco-friendly renewable energy sources.
This aspect of the bill is likely to be well-received, as Paraguay relies heavily on hydroelectric power. Global mining companies have been attracted to the country due to the surplus energy available from hydroelectric plants.
Despite these advantages, the bill may face opposition from power companies who blame illegal crypto mining for disruptions in their networks. There have been instances where miners have unlawfully connected their equipment to local grids, leading to police interventions and the seizure of Bitcoin ASIC miners.
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