Bitcoin mining regulation in Paraguay: transparency and electrical safety

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

A new bill has entered Paraguay’s Congress with the aim of 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 MP María Constancia Benítez, highlights The potential of Bitcoin mining promote the economic and technological development of Paraguay, as we wrote previously in the CFN.

The proposal places emphasis on the use of renewable energy for Bitcoin mining and tries to ensure compliance environmental regulations. It also aims to implement a transparent and efficient regulatory framework.

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The need for transparency is underlined by recent discoveries of corruption cases 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 allegedly illegally consumed electricity.

“It is of fundamental importance to legislate on cryptomining, as it has the potential to attract foreign and national investments, generate employment and position Paraguay as a technological and up-to-date hotspot in the region. By regulating this activity, an environment of legal and economic security is promoted, which is essential for lasting development.” – Bill to regulate Bitcoin mining in Paraguay.

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

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

Furthermore, the bill aims to prevent money laundering and terrorist financing, activities allegedly associated with cryptocurrency mining. To this end, the regulation provides for a regime of sanctions and suspensions for non-compliance.

“A strong regulatory framework will place Paraguay at the forefront of technological innovation and increase its competitiveness globally,” underlines Congresswoman Benítez’s bill. “This will attract companies and technology experts, fostering an ecosystem of innovation and development,” she adds.

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

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

This bill is part of a larger legislative effort, as there are three other proposals regarding Bitcoin mining in Paraguay. These include an anti-mining law that aims to ban the industry and all Bitcoin-related activities. This proposal is still awaiting discussion in the Congress of Paraguay.

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