On Thursday, Paraguay’s Senate approved a bill aimed at regulating cryptocurrency mining and trading in the country.
According to a post on Twitter by one of the three proponents of the bill, Senator Fernando Silva Facetti said that the Paraguayan Chamber of Deputies will meet to deliberate on the bill in 2022.
Paraguay will decide on encryption law
The project requires all miners, whether natural or legal, to apply for approval to consume industrial electricity before applying for a license.
In addition, the bill establishes that the Ministry of Industry and Commerce will supervise cryptocurrency mining within the country, although with the help of the Office to Combat Money Laundering and the country’s National Securities Commission. Meanwhile, the National Electricity Administration will also participate in regulating the activity.
Meanwhile, while it does not clearly state the idea of an exchange, the bill clearly proposes a kind of record keeping for any legal person or legal entity that claims to offer crypto trading or custody services to third parties.
Also included in the bill is the fact that Paraguay consumes only a third of the energy it produces. Invariably this means that if regulated, crypto mining activities would make up for the remaining thousands of megawatts of electricity that Paraguay currently does not use.
Paraguay is undoubtedly a safe haven for many miners due to its low electricity rate, which is obviously the lowest in the region, charging only around US $ 0.05 per kilowatt-hour.