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Paraguay Becomes a Paradise for Bitcoin Miners

Navigasi - Paraguay's legislature has approved a bill that creates a tax and regulatory framework for crypto mining in the South American country. The senate bill regulates businesses that conduct mining activities in Bitcoin-friendly countries.

Paraguay Becomes a Paradise for Bitcoin Miners
Paraguay Becomes a Paradise for Bitcoin Miners

The proposal stems from a law drafted last year by Congressman Carlos Rejala and Senator Fernando Silva Facetti, which also aims to regulate mining and trading of crypto assets. It now needs to be approved by President Mario Abdo Benitez before it becomes law.

This time, the law requires the Ministry of Industry and Trade (MIC) to oversee crypto industry service providers.

The text of the law has not yet been published, but the Paraguayan Congress website says mining needs to be authorized by the MIC and the National Electricity Administration will be in charge of energy supply.

Bitcoin miners were expelled from China, some of them moved to the United States (US) and some were looking for other countries including Paraguay. It was the Chinese company Future Fintech that announced its plans to build a Bitcoin mining facility in Paraguay.

Several months ago, local Chinese media said that eight Chinese mining companies were interested in setting up mining facilities in one of the Latin American countries.

Recently, Paraguay has been billed as a 'new paradise' for Bitcoin mining. The reason is that Paraguay has abundant hydroelectric resources and it can be utilized by Bitcoin mining companies.

Bitcoin mining activity has been labeled a “dirty” industry because it pollutes the environment, but with this much clean energy, mining companies can mine without worrying about the impact on the environment. Future Fintech has already looked at the potential of Paraguay as a potential new mining site.

Future Fintech CEO, Shanchun Huang revealed that his party will review the location there to realize the mining facility.

“We plan to carefully assess this development opportunity in Paraguay. We will work with our local consultants to review Paraguay's hydroelectric and clean energy resources, locations to develop mining farms and any preferential policy treatment we may receive for our capital investment," Huang said.

Future Fintech also revealed that the Paraguayan government also supports crypto mining there. Apart from the Chinese company, a number of other companies are secretly interested in moving their crypto mining operations to Paraguay.

The company Digital Assets explained that there are already eight groups of miners from China who are interested in moving to Paraguay. The information was conveyed by the CEO of Digital Assets Juanjo Juanjo Benítez Rickmann. However, Rickmann did not reveal in detail the identity of the crypto mining group.

He only explained that one of the groups is already in Paraguay and plans to install 90 thousand mines in the near future. Unused electrical energy in Paraguay is recorded at 5,500 MW. This is touted as the beginning of a new era of Bitcoin mining there.