Cryptocurrency regulation in Paraguay is progressing steadily, as a cryptocurrency bill introduced in December was passed by the country’s Chamber of Deputies. The bill, which contains definitions and rules for cryptocurrency mining, one of the hot topics in Paraguay due to low electricity costs, will be forwarded to the Senate for discussion.
Paraguay advances bill on cryptocurrencies
Latin American countries are taking cryptocurrencies in a more serious light and are now working to pass legal cryptocurrency frameworks. This is the case of Paraguay, a country that has traditionally been seen as a mining paradise by cryptocurrency mining companies due to the cheap electricity costs that the country presents. Now, a cryptocurrency bill that seeks to bring more clarity to these companies has been passed in the House of Representatives of Paraguay.
The bill, which was approved in December last year by the Senate, was approved with 41 votes in favor and 11 votes against. Carlitos Rejala, one of the biggest supporters of the project, celebrated this evolution on social networks, declaring:
a big leap to bitcoin in Paraguay. The second house of Congress has just passed the proposed bill to create a legal framework for bitcoin mining. 100% hydroelectric renewable energy.
The new bill stipulates that cryptocurrency exchanges will be regulated as entities, having the obligation to register their operations as providers of virtual asset services to SEPELAD, the country’s money laundering watchdog. P2P traders will also have to register their transactions because the rule applies to any person or company that trades, manages, brokers, exchanges or stores crypto assets for third parties. This also includes cryptocurrency custodians.
Cryptocurrency mining will also benefit from this bill, as it would regulate issues related to energy supply and the tariffs that the government may charge, clarifying an activity that is not yet regulated in the country. The project transfers these responsibilities to ANDE, the National Electricity Administration, which will set the energy tariffs according to the mandate of this project, which says that these cannot exceed 15% of industrial tariffs.
The bill will now be sent back to the country’s Senate, which will have up to 90 days to discuss the content and propose changes to the document’s structure. Then, if approved, the bill will be ready for presidential sanction.
What do you think of the newly passed Paraguayan cryptocurrency law? Tell us in the comments section below.
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