Cryptocurrency regulation in Paraguay is progressing steadily, as a crypto bill introduced in December has been approved by the country’s House of Representatives. The bill contains definitions and rules for cryptocurrency mining, one of the hot topics in Paraguay due to the low cost of electricity, and will be brought to the Senate for discussion.
Paraguay advances crypto bill
Latin American countries are taking cryptocurrencies more seriously and are currently working to approve a legal framework for cryptocurrencies. This is the case in Paraguay, which has traditionally been regarded as a mining paradise by cryptocurrency mining companies due to the low cost of electricity in the country.Now, a crypto bill project aimed at giving these companies more clarity has officially recognized in the Paraguayan House of Representatives.
the bill is officially recognized Passed by the Senate in December last year, the vote recorded 41 votes in favor and 11 against. One of the bill’s biggest supporters, Carlitos Rejala, celebrated the development on social media, statement:
a giant leap bitcoin in Paraguay. The Second House of Congress just approved a bill proposal to create a legal framework for Bitcoin mining. 100% hydroelectric renewable energy.
The new bill stipulates that cryptocurrency exchanges will now be regulated as entities, obliged to register their operations as virtual asset service providers with the country’s money laundering watchdog SEPRELAD. P2P traders must also register their operations, as the rules apply to any person or company that will trade, manage, broker, exchange or store crypto assets for a third party. This also includes cryptocurrency custody companies.
Cryptocurrency mining will also benefit from the bill, as it will regulate matters related to energy supply and tariffs the government will be able to impose, clarifying activities that remain unregulated in the country. The bill transfers these responsibilities to the national electricity authority, ANDE, which will determine the electricity prices in line with the bill, which stipulates that these electricity prices cannot exceed 15% of the industrial electricity price.
The bill will now go 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 would be ready for presidential approval.
What do you think of the newly approved Paraguay cryptocurrency bill? Let us know in the comments section below.
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