Cryptocurrency regulations in Paraguay have been boosted with the approval of a crypto bill introduced in December. The Chamber of Representatives, the law-making body in the country, has given its approval to the crypto regulation framework.
The bill contains specific rules for cryptocurrency mining in Paraguay.
Mining has been the hottest topic of discussion because of the electricity cost involved. The bill is set to be passed to the Senate for further discussion.
Paraguay Moves Ahead with a Crypto Bill
Latin American countries are taking cryptocurrency seriously and are extensively working to develop regulatory guidelines. This is what Paraguay is aiming to achieve. Due to cheap electricity costs, the country is traditionally regarded as a crypto mining haven.
However, there is a lack of clarity in the Paraguayan crypto space, and regulation is needed to set things straight. Now, a bill is proposed to draw the line and set the industry on the path of progress.
The new bill is designed to bring more clarity to the industry and manage mining companies’ activities. The Chamber of Representatives of Paraguay has given the green light for its implementation.
Moreover, the Senate approved the bill last December, having amassed 41 votes in its favor against 14. One of the bill’s biggest backers, Carlitos Rejala, celebrated the win on his social media page.
Rajala stated that the bill’s passing is a big step; it will create the legal framework for Bitcoin mining. The new development boosts the industry by making Bitcoin mining 100% hydroelectric power.
Bitcoin mining in the country is a booming business sector as different miners are found there. But the absence of laws makes the industry chaotic for investors.
What the Regulations Specify
According to the new bill, cryptocurrency exchanges operating in the country are now regulated as entities. Additionally, crypto exchanges must register their businesses as digital asset service providers with the state’s regulatory agency.
The SEPRELAD is the anti-money laundering watchdog in Paraguay. Likewise, peer-to-peer (P2P) traders also need to register because the law applies to all trading entities operating in the country.
Moreover, cryptocurrency mining will benefit immensely from the new bill. The bill will regulate issues relating to energy supply and taxes to be paid to the government. For its part, the government, through the new bill, can clarify any activity not regulated in the country.
The National Electricity Administration (ANDE) will be responsible for establishing the power rates for the industry as indicated. The bill mandates the power distribution company to stick to a specific rate that should not exceed 15%.
Finally, the Chambers of Representatives of Paraguay will forward the new bill to the Senate before the Senate can conclude. Meanwhile, the Senate has 90 days to assess the bill or propose some amendment to the bill’s content.
Once the Senate deliberations are completed, the president will have the final say by sanctioning the bill.
This will mark a new phase in the history of cryptocurrency mining in Paraguay.