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 25, 2022 at 8:59 p.m. UTC

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

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.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

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

CoinDesk - Unknown

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

Trending

1
CoinDesk - Unknown
Morgan Creek Is Trying to Counter FTX’s BlockFi Bailout, Leaked Call Shows

FTX’s $250 million credit facility offer – if inked as initially proposed – stood to effectively wipe out all BlockFi shareholders, including Morgan Creek Digital, the firm told its investors.

CoinDesk - Unknown
3
CoinDesk - Unknown
A New Chapter of Web3: Solana Unveils Smartphone ‘Saga’; Moody’s Downgrades Coinbase

The most valuable crypto stories for Friday, June 24, 2022.

CoinDesk - Unknown
4
CoinDesk - Unknown
How Are Institutions and Companies Investing in Crypto?

From putting bitcoin on their balance sheets to setting up shop in the metaverse, the ways brands and institutions are investing in cryptocurrencies continues to expand.

CoinDesk - Unknown