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Paraguay's Chamber of Deputies on Wednesday approved by a 40-12 vote a bill regulating crypto mining and trading.
The country’s Senate in December had already passed similar legislation, and the bill will now return to that body with the Chamber of Deputies’ modifications. Once the Senate approves the changes, the pending law would move to the executive branch, which hasn’t yet signaled whether it will sign or veto.
Speaking with CoinDesk last year, Carlos Rejala – one of the bill’s authors – said the legislation aims to attract international miners to Paraguay, which has one of the lowest electricity rates in Latin America at around 5 cents per kilowatt-hour.
If the bill becomes law, individual and corporate miners will have to request authorization for industrial electricity consumption and then apply for a license. The proposal also creates a registry for any individual or legal entity aiming to provide crypto trading or custody services for third parties, although the concept of exchange is not included.
In the debate, Congressman Tadeo Rojas (ANR-Central) argued against the legislation, noting that the Chamber of Deputies’ budget committee recommended rejection. He added the impact on job creation is low compared with the energy consumption required by mining companies.
In favor of the proposal, Congressman Sebastián García (PPQ-Capital) said the bill sets ceilings so that energy consumption is in line with availability.