Paraguayan Senate Passes Cryptocurrency Bill

The Paraguayan Senate has passed a bill regulating cryptocurrency trading and mining in the country.

On December 21, 2021, the Paraguayan Senate passed a bill to regulate cryptocurrency trading and mining, as confirmed by Senator Fernando Silva Facetti, one of the bill’s three authors.

However, the bill encountered problems in the Chamber of Deputies, causing the process to take until May 2022 before it was approved by the Chamber of Deputies with certain amendments. And until July 14, the Paraguayan Senate officially approved the new version of this bill.

Now that the bill has been passed by both houses, the next step will be to submit it to President Mario Abdo Benítez, who can sign the bill into action or veto it.

The main amendment proposed by the Chamber of Deputies and accepted by the Paraguayan Senate is that the primary law enforcement agency will be the Ministry of Industry and Commerce, which will penalize individuals or companies carrying out mining and providing services. financial services in cryptocurrencies without the corresponding permission from the government.

The National Electricity Administration is the powering department alongside the Secretariat for the Prevention of Money or Asset Laundering, responsible for overseeing the entire investment process made by crypto institutions. The National Securities Commission will be in charge of commercializing the acquired assets.

The law stipulates that individual and corporate miners must request industrial electricity consumption authorization and apply for a license. It also creates a registry for any individual or legal entity aiming to provide crypto trading or custody services for third parties.

Congressman Carlos Rejala, one of the bill’s authors, said last year that the law looks to attract international miners using the low electricity rates of the country, which are around 5 cents per kilowatt-hour.

Canadian Bitcoin miner Bitfarms (BITF) is one of the prominent mining players operating in Paraguay, with a 10-megawatt facility in the city of Villarica, located in the south-central part of the South American country.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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