Senate votes not to introduce bill for Bitcoin mining

Senate votes not to introduce bill for Bitcoin mining

The Senate voted on Monday not to establish a regulatory framework, which keeps the lucrative industry in a legal grey area after it was not moving forward with plans to introduce legislation for its nascent coin mining industry.

How smart money is playing the game of criptocurrency.

The bill that was drafted by Congressman Carlos Rejala and Senator Fernando Facetti last year was passed by the parliament in July, only to face a disappointing result this summer, when President Mario Benitez vetoed the legislation. Benitez stated that cryptocurrencies likeBitcoin were energy intensive to mine and did not generate enough employment for the South American country. The bill was passed to the Chamber of DeputiesChamber of Deputies after the bill was sparked by the furor among parliamentarians who were hoping to regulate the industry.

The bill was voted against by the chamber on Monday.

If the bill had been approved, miners would have enjoyed price caps on electricity they're charged for mining criptocurrencies.

In recent years, the energy-rich country has been attempting to export surplus energy abroad and use it in the Bitcoin mining industry, with foreign firms like Bitfarms, a mining company headquartered in Canada, coming to the South American country to lease a mine for a five-year period.