The Senate of Paraguay approved a proposal to regulate cryptocurrency mining and trading.

On Thursday, the Paraguayan Senate enacted legislation governing cryptocurrency mining and trade. Paraguay’s Chamber of Deputies will discuss the bill in 2022

According to the law, miners – whether individuals or businesses – will need to acquire authorisation for industrial power usage before applying for a license.

According to the bill, the Industry and Commerce Secretariat of Paraguay would permit and monitor crypto mining within the nation, with the National Securities Commission, Anti-Money Laundering Office, and National Electricity Administration also regulating the practice.

Despite the absence of the idea of exchange, the law provides a register for any individual or legal body intending to provide crypto trading or custody services to third parties.

According to the law, the country utilizes just one-third of the energy produced, and if controlled, crypto mining activity may reach “thousands of megawatts of electricity consumption that Paraguay currently has as surplus.”

One of the primary draws for mining businesses is the cheap cost of power, which is roughly $0.05 per kilowatt-hour, according to Paraguayan lawmaker Carlos Rejala, who added that nearly 100 percent of energy output originates from hydroelectric sources.

In July, Rejala introduced legislation to govern the ownership and registration of cryptocurrency and cryptocurrency mining enterprises.

Patrick

Coincu News