Paraguay’s cryptocurrency regulation is making steady progress, as the country’s Chamber of Deputies approved a crypto bill submitted in December. The bill, which includes definitions and rules for cryptocurrency mining, one of the hottest topics in Paraguay due to low electricity costs, will now be passed to the Senate for consideration.
Paraguay advances crypto bill
LATAM countries are taking cryptocurrencies more seriously and are in the process of approving a legal framework for cryptocurrencies. This is the case of Paraguay. Paraguay has traditionally been considered a mining paradise by cryptocurrency mining companies due to the country’s characteristic low cost of electricity. Currently, a crypto bill project that seeks to bring more clarity to these companies has beenapprovedby the Paraguayan Congress of Deputies.
The bill was approved by the Senate last December with a voting record of 41 votes in favor and 11 against. Carlitos Rejala, one of the bill’s biggest supporters, celebrated this development on social media, saying:
A big leap for Bitcoinin Paraguay The second house just approved a draft bill to create a legal framework for bitcoin mining. 100% hydro renewable power.
Regulatory Details
The new bill stipulates that cryptocurrency exchanges will be regulated as business entities and will be obligated to register their business as a virtual asset service provider with the national money laundering watchdog, SEPRELAD The regulation states. P2P traders are also required to register their businesses, as this regulation applies to any person or company seeking to trade, manage, broker, exchange, or store crypto assets on behalf of third parties. This includes crypto storage companies.
Cryptocurrency mining would also benefit from this legislation. This is because it will regulate matters related to energy supply and the tariffs that the government can collect, and will clarify activities that are not yet regulated in the country. This bill transfers these responsibilities to the National Electricity Administration (ANDE), which will set electricity tariffs in accordance with this bill’s mandate that the tariffs shall not exceed 15% of industrial tariffs.
The bill will now be passed back to the Senate, which will have 90 days to debate its contents and propose changes to the structure of the document. After that, if approved, the bill would be ready for presidential sanction.
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