PARAGUAY’S CHAMBER OF DEPUTIES APPROVED A BILL REGULATING CRYPTO MINING AND TRADING
Regulating Crypto Trading and Mining
On Wednesday, the Chamber of Deputies of Paraguay (second chamber of Congress) approved a bill regulating crypto mining and trading by 40-12 votes. By December, the Senate had passed a similar law; now the bill must return to that party with the amendments of the Deputy Council.
If the Senate approves the changes, pending legislation will move to the executive branch, which has not indicated it will sign or block the measurement yet. The entire bill period was broadcast on YouTube on May 25th.
If the law is officially adopted as a law, any person or miner of a company can apply for authorization for industrial use of electricity. However, the Miner will need to apply for the same license.
In addition, the law aims to create a registration site for any person or legal entity wishing to participate in crypto trading or third party retention rights. The concept of trading, however, does not exist.
In particular, the bill aims to make Paraguay an international hub for miners. In addition, the country’s low electricity costs may favor this move as Paraguay has about five cents per kilowatt-hour, the lowest electricity rate in Latin America.
Can Paraguay Receive BTC As Official Tender?
Towards the end of March a survey by CoinMarketCap highlighted that Paraguay could be the first of the top three countries publicly declared to be the next to accept crypto as a legal tender, followed by Venezuela and Anguilla.
So far, although there is no review about a country that accepts BTC as a legal tender, progress in space has been positive. However, the bill has met with strong opposition.
Congressman Tadeo Rojas also opposed the bill, saying the Chamber of Deputies budget recommended it. In addition, he expressed the view that the positive impact on job creation was small compared to the energy consumption required by crypto mines.
With that said, Congressman Sebastián García spoke out in favor of the proposal, saying the bill set the bar high so that the use of force could go hand in hand.