Here’s what Bitcoin mining would look like in Paraguay following this law

Sahana Kiran
Source – Pixabay

With the demand for Bitcoin [BTC] and other crypto assets taking the front stage, countries across the globe are forced to roll out regulations governing the industry. While numerous regions have already rolled out regulations, the ones that haven’t, are taking speeding up the process. Even though Paraguay has formulated a bill governing crypto, it seems to be making rounds in the country’s government offices.

Following approval of the Senate back in December 2021, a bill regulating Bitcoin mining landed in the Paraguay Chamber of Deputies. Just yesterday, the Chamber of Deputies gave the bill a green signal post a 40-12 vote. Now, once again back in the Senate for it to approve the amendments to the bill. The executive branch would then give its final verdict.

The crypto industry, itself is split up into several sectors, as a result, governments are obligated to set up rules categorically. The rewards that the mining industry offers have lured an array of individuals and entities into the market. However, the energy consumption of Bitcoin mining comes as a concern to many. Therefore, governments have been taking a keener look into the industry.

Paraguay known for its low electricity rates intends to capitalize on the same. Regulatory clarity and abundant electricity are every Bitcoin miner’s dreams. With this, the country seemed to be welcoming international miners.

Bitcoin mining in Paraguay

This Latin American country aspires to become a major Bitcoin mining hub. If the aforementioned measure becomes law, miners, both corporate and individual, will be required to apply for industrial electricity authorization. This would be followed by the application for a license.

Although the notion of exchange is not mentioned, the plan also provides a register for any individual or legal body wishing to provide crypto trading or custody services for other parties.

While prominent miners have already found respite in Kazakhstan, the increase in the demand for Bitcoin mining could lure several into Paraguay as well.