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Arkansas Senate committee approves two bills to regulate cryptocurrency mining • Arkansas Advocate

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Arkansas Senate committee approves two bills to regulate cryptocurrency mining • Arkansas Advocate

An Arkansas Senate committee unanimously approved two bills Thursday that would regulate cryptocurrency mining operations, and the committee will reconvene Tuesday to hear more public comment on the policies.

Republican Sens. Joshua Bryant of Rogers and Missy Irvin of Mountain View introduced the bills Wednesday after the House approved resolutions Wednesday allowing them to be introduced during the fiscal session. The Senate approved identical resolutions April 11.

The discussion of whether and how much to regulate crypto mines on the state level arose from Act 851 of 2023, or the Arkansas Data Centers Act, which limited local governments’ ability to regulate crypto mines.

Crypto mines, large groups of computers that harvest digital currency, are often located in rural areas because they take up a lot of space. They also require significant energy to operate and water to keep computers cool.

There are crypto mines in DeWitt and in the Bono community near Greenbrier, and officials have raised concerns over foreign ownership and whether the mines pose a national security risk. Additionally, Greenbrier-area residents have filed a lawsuit claiming noise pollution from the local crypto mine, which is in Irvin’s district.

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Six of eight crypto mining resolutions fall short in Arkansas House

Bryant’s bill, Senate Bill 78, would place noise limits on Arkansas crypto mines, prohibit them from being owned by certain foreign entities and allow local governments to pass ordinances regulating the mines.

The bill’s listed options for noise regulations include “using liquid cooling or submerged cooling” techniques, sealing computers into structures that minimize the sound heard outside, and being located at least 2,000 feet away from “the nearest residential or commercial structure.”

Residents or business owners within 2,000 feet of a crypto mine would be able to seek legal remedies regarding noise complaints in county circuit courts, Bryant said.

The bill also clarifies that individuals can engage in crypto mining from their homes without government interference, he said.

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“Digital asset mining in the home is limited to the confines of what your utilities can provide you based on your normal retail rate,” Bryant said. “This is a hobby; this is something your personal computer is able to do if you so choose…If you want to operate a business out of your home with this and declare that, then you must follow local guidelines and local ordinances.”

Irvin’s bill, Senate Bill 79, would require crypto mines to be licensed by the state Department of Energy and Environment. It would also require the department to inform legislative committees of its crypto mine regulation methods.

Both bills contain emergency clauses, meaning they would go into effect immediately if Gov. Sarah Huckabee Sanders signs them into law.

Six more potential crypto regulation policies passed the Senate but failed in the House within the past week.

Senate Bill 78 largely accounts for one of the failed resolutions, which would have allowed local governments to regulate crypto mines and prohibit ownership of the mines by the list of foreign countries from which the federal International Traffic in Arms Regulations bans imports and exports.

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Irvin said the two bills lay the groundwork to use “several layers of tools” to both regulate the crypto industry and have future discussions in the Legislature about whether to put additional regulations in place.

“There’s a lot we don’t know and that we still are learning, so I think we need the time to flesh all that out,” she said in an interview.

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Public comment

Jerry Lee Bogard and Kenneth Graves — both residents of Arkansas County, where the crypto mine near DeWitt is located — spoke in favor of both bills.

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Graves is on the DeWitt School Board, and he said there is a school about two and a half miles from the crypto mine. Noise from the mine can travel up to eight and a half miles on a windy day, and he does not want the noise or the mine’s electricity usage to interfere with children’s education, he said.

Bogard runs the Grand Prairie Farming and Water Company, a water conservation business in Stuttgart, and he expressed concern about the effect of crypto mines on Arkansas’ groundwater supply. The Sparta/Memphis Aquifer in East Arkansas contains water clean enough to drink and does not recharge easily.

“One crypto mine may use a few million gallons of water,” Bogard said. “That’s not a big deal [by itself], but what is a big deal is that it’s coming out of an aquifer that we depend upon for human consumption. Twenty crypto mines may be a bit of a concern if you live nearby…any number of these small communities that have aging infrastructure and depend upon the Sparta Aquifer wells.”

John Bethel, director of public affairs at Entergy, answered questions from committee members about crypto mines’ impact on local electric grids.

Bethel said the utility company notifies customers who are straining the grid, such as crypto miners, that their access to electricity will be shut off if they do not reduce their usage. Customers who do not comply with the notification will receive financial penalties that Entergy will later retract if the customer only fails to comply twice in a year, Bethel said.

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Committee chair Sen. Scott Flippo, R-Bull Shoals, said those who do not heed Entergy’s warnings might need to face stricter consequences.

Earlier Thursday, the Senate voted to suspend the rule requiring a bill not to be heard in committee under 24 hours after being introduced. Sen. Stephanie Flowers, D-Pine Bluff, expressed frustration that the vote might limit public comment, since her district includes part of Arkansas County.

Bryant and Irvin agreed, at Flippo’s suggestion, to refer the bills back to the committee next week so they can receive more public comment at Tuesday’s meeting.

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Crypto

Navigating the Rise of Cryptocurrency in Latin America

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Navigating the Rise of Cryptocurrency in Latin America

Cryptocurrency adoption in Latin America is
experiencing explosive growth, driven by a mix of factors in the area like
economic instability, financial innovation, and regulatory evolution. Countries
like Brazil, Argentina, and Mexico are emerging as global leaders in
cryptocurrency usage, offering a fertile ground for both individuals and
businesses to explore digital assets as practical solutions for real-world
financial challenges.

To learn more about Latin America’s rapidly
evolving crypto market, download our whitepaper, “Unlock the Potential of Latin
America’s Booming Crypto Market.”

Read the report on the Latam’s blooming cryptocurrency market.

The rising wave of crypto in Latin
America

Cryptocurrency adoption in Latin America is
accelerating, fueled by inflation and currency devaluation. In Argentina, where
inflation has devastated the peso, Bitcoin and stablecoins have played an
important role in protecting savings. Around 15% of the population uses crypto
regularly, finding it a critical hedge against inflation.

In Brazil, crypto is even being integrated
into mainstream finance. The country was one of the first to approve
cryptocurrency exchange-traded funds (ETFs), and by 2023, the value of USDT
transactions was equivalent to $55 billion, more than 80% of its crypto volume.
This makes Brazil a key player in the global crypto market.

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Mexico has carved out a niche in crypto
remittances, with Bitso processing over $3.3 billion in cross-border payments
in 2022. Crypto is emerging as a more efficient solution for these
transactions, benefiting millions of families reliant on remittances.

Regulatory evolution driving market growth

The regulatory environment across Latin
America is evolving, creating opportunities for businesses to expand. For example,
El Salvador made history by becoming the first country to adopt Bitcoin as
legal tender, with further initiatives like Bitcoin-backed bonds and a
government-sponsored crypto wallet. This bold experiment has positioned El
Salvador as a global trailblazer for cryptocurrency adoption, even as its
long-term effects are being evaluated.

Meanwhile, Mexico’s fintech law from 2018
recognized cryptocurrencies as virtual assets, establishing a clear regulatory
pathway for businesses. This clarity has helped companies like Bitso thrive. Meanwhile,
Colombia’s regulatory sandbox has promoted crypto experimentation in a
controlled environment, attracting fintechs and positioning the country as a
future hub for innovation.

Argentina, while still working on a
comprehensive regulatory framework, has seen increased interest in crypto
regulation under its new pro-crypto government. Colombia’s sandbox model is
providing fintechs with a controlled environment to test their offerings,
positioning the country as an emerging leader in the digital asset space as
well.

Emerging opportunities

Despite infrastructure and regulatory
challenges, Latin America offers immense opportunities for crypto growth.
Argentina and Venezuela, with their hyperinflationary economies, continue to
see widespread crypto adoption as citizens seek alternatives to their unstable
currencies. Stablecoins like USDT and USDC can help individuals and businesses
in these countries by providing greater financial stability.

Advertisement

Mexico’s growing role in crypto remittances
and Colombia’s fintech-friendly environment highlight the region’s potential
for further expansion. Tokenization is another area of growth, with Brazil’s
agricultural commodity token project, Agrotoken, revolutionizing access to
credit for small farmers. Brazil’s Drex initiative also highlights the
country’s commitment to developing a fully digital economy and integrating
blockchain technology into mainstream financial systems.

Latin America’s complex economic landscape,
combined with its openness to crypto solutions, makes it an exciting market for
businesses seeking to leverage digital assets. By addressing regulatory and
payment infrastructure challenges, companies can unlock the full potential of
this rapidly evolving crypto market.

The role of payment solutions in this evolving
market

Cross-border payments and regulatory
complexities are significant hurdles for businesses expanding into the Latin
American crypto market. The region’s rising demand for remittances, along with
fragmented payment infrastructures, means businesses must navigate
multi-currency transactions. Additionally, evolving regulatory landscapes
require businesses to stay compliant while managing operational risks.

Paysafe addresses these challenges by
offering solutions that streamline cross-border payments, supporting multiple
currencies and reducing transaction costs. With strong integration into key
local systems, Paysafe helps businesses deliver the seamless payment options
customers expect.

Furthermore, Paysafe’s regulatory expertise
ensures businesses remain compliant across diverse markets, while its advanced
security features protect against fraud, providing businesses with the trust
and reliability they need to thrive in the region’s fast-growing crypto
ecosystem.

Advertisement

Conclusion

Latin America is a prime market for
cryptocurrency adoption and its growth shows no sign of slowing down. From the
pioneering efforts of El Salvador to the sophisticated regulatory framework in
Brazil, the region offers diverse use cases for businesses looking to enter or
expand their crypto operations. Our whitepaper highlights that despite
challenges like regulatory fragmentation and cultural nuances, Latin America
presents tremendous opportunities for growth.

For more detailed insights and strategies,
download our whitepaper, “Unlock the Potential of Latin America’s Booming
Crypto Market.”

Read the report on the Latam’s blooming cryptocurrency market.

By leveraging Paysafe’s comprehensive
payment solutions, businesses can seamlessly navigate the complexities of the Latin
American crypto landscape, unlocking the full potential of one of the world’s
fastest-growing markets.

Disclaimer:

This article is not intended to be
financial, investment or trading advice. This article is for information and
solely for education purposes. It does not protect against any financial loss,
risk or fraud.

Advertisement

Why Paysafe

Paysafe supports Latin American businesses
with over 25 years of experience, offering top-tier fraud, risk, and compliance
support. Their solutions streamline cross-border payments, support multiple
currencies, and reduce transaction costs, enabling confident expansion in the
crypto market.

Cryptocurrency adoption in Latin America is
experiencing explosive growth, driven by a mix of factors in the area like
economic instability, financial innovation, and regulatory evolution. Countries
like Brazil, Argentina, and Mexico are emerging as global leaders in
cryptocurrency usage, offering a fertile ground for both individuals and
businesses to explore digital assets as practical solutions for real-world
financial challenges.

To learn more about Latin America’s rapidly
evolving crypto market, download our whitepaper, “Unlock the Potential of Latin
America’s Booming Crypto Market.”

Read the report on the Latam’s blooming cryptocurrency market.

The rising wave of crypto in Latin
America

Cryptocurrency adoption in Latin America is
accelerating, fueled by inflation and currency devaluation. In Argentina, where
inflation has devastated the peso, Bitcoin and stablecoins have played an
important role in protecting savings. Around 15% of the population uses crypto
regularly, finding it a critical hedge against inflation.

Advertisement

In Brazil, crypto is even being integrated
into mainstream finance. The country was one of the first to approve
cryptocurrency exchange-traded funds (ETFs), and by 2023, the value of USDT
transactions was equivalent to $55 billion, more than 80% of its crypto volume.
This makes Brazil a key player in the global crypto market.

Mexico has carved out a niche in crypto
remittances, with Bitso processing over $3.3 billion in cross-border payments
in 2022. Crypto is emerging as a more efficient solution for these
transactions, benefiting millions of families reliant on remittances.

Regulatory evolution driving market growth

The regulatory environment across Latin
America is evolving, creating opportunities for businesses to expand. For example,
El Salvador made history by becoming the first country to adopt Bitcoin as
legal tender, with further initiatives like Bitcoin-backed bonds and a
government-sponsored crypto wallet. This bold experiment has positioned El
Salvador as a global trailblazer for cryptocurrency adoption, even as its
long-term effects are being evaluated.

Meanwhile, Mexico’s fintech law from 2018
recognized cryptocurrencies as virtual assets, establishing a clear regulatory
pathway for businesses. This clarity has helped companies like Bitso thrive. Meanwhile,
Colombia’s regulatory sandbox has promoted crypto experimentation in a
controlled environment, attracting fintechs and positioning the country as a
future hub for innovation.

Argentina, while still working on a
comprehensive regulatory framework, has seen increased interest in crypto
regulation under its new pro-crypto government. Colombia’s sandbox model is
providing fintechs with a controlled environment to test their offerings,
positioning the country as an emerging leader in the digital asset space as
well.

Advertisement

Emerging opportunities

Despite infrastructure and regulatory
challenges, Latin America offers immense opportunities for crypto growth.
Argentina and Venezuela, with their hyperinflationary economies, continue to
see widespread crypto adoption as citizens seek alternatives to their unstable
currencies. Stablecoins like USDT and USDC can help individuals and businesses
in these countries by providing greater financial stability.

Mexico’s growing role in crypto remittances
and Colombia’s fintech-friendly environment highlight the region’s potential
for further expansion. Tokenization is another area of growth, with Brazil’s
agricultural commodity token project, Agrotoken, revolutionizing access to
credit for small farmers. Brazil’s Drex initiative also highlights the
country’s commitment to developing a fully digital economy and integrating
blockchain technology into mainstream financial systems.

Latin America’s complex economic landscape,
combined with its openness to crypto solutions, makes it an exciting market for
businesses seeking to leverage digital assets. By addressing regulatory and
payment infrastructure challenges, companies can unlock the full potential of
this rapidly evolving crypto market.

The role of payment solutions in this evolving
market

Cross-border payments and regulatory
complexities are significant hurdles for businesses expanding into the Latin
American crypto market. The region’s rising demand for remittances, along with
fragmented payment infrastructures, means businesses must navigate
multi-currency transactions. Additionally, evolving regulatory landscapes
require businesses to stay compliant while managing operational risks.

Paysafe addresses these challenges by
offering solutions that streamline cross-border payments, supporting multiple
currencies and reducing transaction costs. With strong integration into key
local systems, Paysafe helps businesses deliver the seamless payment options
customers expect.

Advertisement

Furthermore, Paysafe’s regulatory expertise
ensures businesses remain compliant across diverse markets, while its advanced
security features protect against fraud, providing businesses with the trust
and reliability they need to thrive in the region’s fast-growing crypto
ecosystem.

Conclusion

Latin America is a prime market for
cryptocurrency adoption and its growth shows no sign of slowing down. From the
pioneering efforts of El Salvador to the sophisticated regulatory framework in
Brazil, the region offers diverse use cases for businesses looking to enter or
expand their crypto operations. Our whitepaper highlights that despite
challenges like regulatory fragmentation and cultural nuances, Latin America
presents tremendous opportunities for growth.

For more detailed insights and strategies,
download our whitepaper, “Unlock the Potential of Latin America’s Booming
Crypto Market.”

Read the report on the Latam’s blooming cryptocurrency market.

By leveraging Paysafe’s comprehensive
payment solutions, businesses can seamlessly navigate the complexities of the Latin
American crypto landscape, unlocking the full potential of one of the world’s
fastest-growing markets.

Advertisement

Disclaimer:

This article is not intended to be
financial, investment or trading advice. This article is for information and
solely for education purposes. It does not protect against any financial loss,
risk or fraud.

Why Paysafe

Paysafe supports Latin American businesses
with over 25 years of experience, offering top-tier fraud, risk, and compliance
support. Their solutions streamline cross-border payments, support multiple
currencies, and reduce transaction costs, enabling confident expansion in the
crypto market.

Continue Reading

Crypto

Focus: As bitcoin soars, luxury brands consider accepting crypto payments

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Focus: As bitcoin soars, luxury brands consider accepting crypto payments
Bitcoin’s soaring value has caught the attention of high-end fashion brands and retailers, prompting further interest in offering cryptocurrencies as a means of payment to tap in to fresh pockets of wealth and build loyalty with crypto investors.
Continue Reading

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BlackRock releases educational Bitcoin video, indicates cryptocurrency acceptance By Investing.com

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BlackRock releases educational Bitcoin video, indicates cryptocurrency acceptance By Investing.com

Investing.com — BlackRock (NYSE:), recognized as the world’s biggest asset manager, controlling $11.5 trillion in assets, has made a significant move toward embracing cryptocurrencies. The company recently launched a three-minute educational video focused on , the leading digital currency. This move comes on the heels of BlackRock’s recent advice to investors that they could consider allocating up to 2% of their portfolio to Bitcoin.

This suggests an increasing acceptance of cryptocurrencies within conventional financial portfolios. Bitcoin, in particular, has seen a substantial increase in its value this year, with a rise of over 150%.

In addition, BlackRock is the owner of the iShares Bitcoin Trust ETF, further indicating its growing interest in and acceptance of the digital currency market.

Link to video

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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