The cryptocurrency market in Paraguay is about to undergo a major change. In March, a new bill will be introduced to Congress, prepared by the Chamber of Financial Technology, which seeks to regulate bitcoin mining and cryptocurrency trading in the country.
The project has the support of some deputies, but the party responsible for signing it has not yet been determined. The FinTech Chamber merger is a group of several Brazilian bitcoin miners who, since 2015, have settled in Paraguay to use Itapu’s energy to mine bitcoin.
According to Fernando Arreola, Head of the Blockchain Department of the Paraguayan Chamber of Fintech, the bill has striking similarities to a document that was submitted by the Chamber of Deputies in December 2022 but was rejected by President Mario Abdo Benitez.
Sebastian García, deputy of Paraguay’s Chamber of Deputies, stated that cryptocurrency regulation is a pending issue, as there is a “regulatory vacuum” for the bitcoin mining industry and the market itself.
He points out that this lack of clear rules fosters informal and bad market practices.
Still according to García, in the Paraguayan Congress and in the political sphere, there is a lot of ignorance about the cryptocurrency ecosystem and its importance to the country.
He points out that it is important that cryptocurrencies be understood as an opportunity rather than something spontaneous or fleeting, and that they be regulated in an orderly manner to avoid scandals.
“The idea is that bitcoin is understood as an opportunity and not[as]something of the moment, in fashion, but as something that needs to be standardized in an orderly way to avoid scandals like the ones we see around the world,” García said.
Paraguay, due to its green sources of energy generation, is one of the countries with the highest potential profitability for bitcoin mining. Proper regulation of the cryptocurrency market can bring great economic benefits to the country.