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Paraguay has passed legislation to control cryptocurrency mining and trade

With a 40-12 vote, Paraguay’s second body of Congress (the Chamber of Deputies) adopted a bill that would regulate cryptocurrency mining and trade, with some changes. On May 25, the entire session was streamed live on YouTube.

The bill will now be sent to the Senate, which passed it in an identical version in December 2021. After the measure is sent to the Senate, the body must adopt the amendments, and the bill will then be sent to the executive branch.

The goal of this measure is to turn Paraguay into an international mining centre, thanks to the country’s low electricity costs of roughly five cents per kilowatt-hour, which is the lowest in Latin America.

If the proposal is passed into law, any individual or corporate miner will be required to apply for a permission for industrial energy usage, after which they will be required to apply for a license.

Furthermore, the law anticipates the formation of a registry for any individual or legal body wishing to engage in crypto trading or third-party custody services. The concept of exchange, on the other hand, appears to be missing.

Paraguay Bill Opposition

The bill was likewise met with fierce resistance. Congressman Tadeo Rojas, who is opposed to the bill, claims that the budget committee of the Chamber of Deputies has also recommended against it. He also pointed out that the beneficial impact on job creation was minor in comparison to the amount of energy consumed by crypto mining.

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Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.