Regulation of Bitcoin mining in Paraguay: transparency and electrical security

• A new bill in Paraguay aims to regulate Bitcoin mining to promote the country’s economic and technological development.
• The proposed law highlights the importance of using renewable energy for Bitcoin mining in Paraguay.

A new bill has entered Paraguay’s Congress aimed at establishing a legal framework for Bitcoin mining in the South American country. This is the fourth proposal aimed at regulating digital mining. The bill, presented by deputy María Constancia Benítez, highlights The potential of Bitcoin mining promote the economic and technological development of Paraguay, as we wrote previously in CFN.

The proposal emphasizes the use of renewable energy to Bitcoin mining and seeks to ensure compliance with Environmental regulations. It also aims to implement a transparent and effective regulatory framework.

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The need for transparency is highlighted by recent discoveries of corruption linked to illegal mining activities in Paraguay. For example, authorities recently discovered around 3,000 Bitcoin ASIC miners hidden near the National Electricity Administration (ANDE)who were consuming electricity illegally.

“It is of fundamental importance to legislate on cryptomining, as it has the potential to attract foreign and domestic investment, generate jobs and position Paraguay as a cutting-edge technological hotspot in the region. By regulating this activity, an environment of legal and economic security is fostered, which is essential for sustainable development. – Bill to regulate Bitcoin mining in Paraguay.

The new bill highlights that Bitcoin mining can attract foreign investment and create direct and indirect jobs. According to Benítez, regulating cryptocurrency mining is crucial because it has the potential to attract national and international investment, generate jobs and position Paraguay as a technology hub in the region. The bill argues that regulation would promote a secure legal and economic environment, essential for sustainable development.

The legislative proposal also focuses on combating energy theft, a growing problem since the start of the year. This led to the intervention of several illegal digital mining farms and the seizure of over 6,000 Bitcoin miners. Benítez’s proposal indicates that illegal and clandestine mining operations cause significant losses for the state and jeopardize the stability and security of the electricity supply.

Additionally, the bill aims to prevent money laundering and terrorist financing, activities allegedly associated with cryptocurrency mining. To this end, the regulation includes a regime of fines and suspensions in the event of non-compliance.

“A solid regulatory framework will place Paraguay at the forefront of technological innovation and increase its competitiveness at the global level,” highlights MP Benítez’s bill. “This will attract companies and technological experts, thus promoting an ecosystem of innovation and development,” he adds.

According to the proposal, the current lack of regulation promotes opacity and lack of accountability. Implementing a clear regulatory framework would force crypto miners to operate transparently.

A solid regulatory framework, the proposal suggests, would place Paraguay at the forefront of technological progress, thus improving its global competitiveness. This would attract businesses and technology experts, thereby fostering an environment conducive to innovation and development.

This bill is part of a broader legislative effort, as there are three other proposals regarding Bitcoin mining in Paraguay. These include an anti-mining law aimed at banning the industry and all activities related to Bitcoin. This proposal is still awaiting debate in the Paraguayan Congress.

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