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A bill aimed at harnessing excess energy in the Latin American country will be debated by the Chamber of Deputies in 2022.
Paraguay’s Senate passed a bill on Thursday to regulate the mining and trading of cryptocurrencies.
Paraguay’s Chamber of Deputies will debate the bill in 2022, Paraguayan Senator Fernando Silva Facetti, one of the three sponsors of the law, confirmed on Twitter.
The bill states that miners – individuals or companies – will have to request a permit for industrial consumption of electricity, and then apply for a license.
According to the bill, the Secretariat of Industry and Commerce of Paraguay will provide and control crypto mining domestically, and the country’s National Securities Commission, the Anti-Money Laundering Authority and the National Electricity Authority will also regulate this activity.
While the concept of an exchange is not included, the bill also offers a registry for any individual or entity seeking to provide cryptocurrency trading or custody services to third parties.
According to the bill, Paraguay only consumes a third of the energy it produces, and if regulated, crypto mining could achieve “the thousands of megawatts of electricity that Paraguay currently has a surplus.”
One of the main attractions for mining companies is the cost of electricity in Paraguay, which is the lowest in the region at about $ 0.05 per kilowatt-hour, Paraguayan Congressman Carlos Reiala told CoinDesk in June, adding that almost 100% of production energy comes from hydropower sources.
In July, Reyala introduced a bill that aims to regulate the ownership and registration of cryptocurrency transactions and cryptocurrency mining.
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