The South American country, Paraguay, has passed bitcoin mining bill. This is according to a report by the Brazil based Spanish website, Portaldobitcoin. The news article, translated by Cryptoinfowatch says that Paraguay’s Chamber of Deputies has given a stamp of approval to the commercialization of mining activities in the country. It stated that the May 25 bill also gives a legal backing to the the regulation of mining activities.
Deputy Carlitos Rejala announced the approval via a Twitter post
“Um big jump for bitcoin not Paraguay! The second chamber of Congress has just approved a proposed bill for the creation of a legal structure for bitcoin mining. 100% hydroelectric renewable energy”, escreveu Rejala.
He added by 52 deputies participated in the ordinary session of the Chamber of Deputies. It took 41 votes in favor and 11 against to pass the bill.
A big leap for #bitcoin in Paraguay 🇵🇾The second chamber of Congress just approved the bill proposal for creating a legal framework for bitcoin mining. 100% Hydroelectric power. — juanjo Benitez Rickmann
The draft law was written by senators Fernando Silva Facetti (Authentic Radical Liberal Party), Antonio Apuril (Let’s do it) and Juan Bartolomé Ramírez (Authentic Radical Liberal Party).
Law Can Take Effect After 90 Days
After the Senate gave its approval last December, it was moved to the Chamber of Deputies for discussion and final voting. Before the law could take effect, it will return to the Senate for ratification after they have gone through any amendments that the Chamber of Deputies has made. This process can take up to 90 days, the paper reports.
The Paraguayan crypto community sees the regulation of the industry as a seal of approval. Juanjo Benitez, CEO of a mining company in Paraguay, Digital Assets S.A., explained to the Bitcoin Portal.
“This law will provide legal, economic and fiscal security, as well as protection for investors who want to go to Paraguay to invest in this sector,”
Cheap Electricity in Paraguay
He maintained that the law will protect mining companies in the region. It will also mandate the licensing of exchanges and virtual operators in the cryptocurrency space. It will also incentivize operators of exchanges and miners in the country.
The report says that this is the first time the Paraguayan crypto space will be opened to support investors, even from outside the country. It has cheap electricity, especially from the Itaipu hydroelectric power plant. Its proximity to Brazil can be a lure to Brazillian mining companies.