Paraguayan Bill Regulating Crypto Mining and Trading Moves Closer to Law

The legislation was approved with modifications in the country’s Chamber of Deputies and will now return to the Senate, which had passed it in December.

AccessTimeIconMay 25, 2022 at 8:52 p.m. UTC
Updated May 11, 2023 at 4:49 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Paraguay's Chamber of Deputies on Wednesday approved by a 40-12 vote a bill regulating crypto mining and trading.

The country’s Senate in December had already passed similar legislation, and the bill will now return to that body with the Chamber of Deputies’ modifications. Once the Senate approves the changes, the pending law would move to the executive branch, which hasn’t yet signaled whether it will sign or veto.

Speaking with CoinDesk last year, Carlos Rejala – one of the bill’s authors – said the legislation aims to attract international miners to Paraguay, which has one of the lowest electricity rates in Latin America at around 5 cents per kilowatt-hour.

If the bill becomes law, individual and corporate miners will have to request authorization for industrial electricity consumption and then apply for a license. The proposal also creates a registry for any individual or legal entity aiming to provide crypto trading or custody services for third parties, although the concept of exchange is not included.

In the debate, Congressman Tadeo Rojas (ANR-Central) argued against the legislation, noting that the Chamber of Deputies’ budget committee recommended rejection. He added the impact on job creation is low compared with the energy consumption required by mining companies.

In favor of the proposal, Congressman Sebastián García (PPQ-Capital) said the bill sets ceilings so that energy consumption is in line with availability.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.

Andrés Engler

Andrés Engler was a CoinDesk editor based in Argentina, where he covers the Latin American crypto ecosystem. He holds BTC and ETH.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.