The country’s Chamber of Representatives approved a December crypto bill. This is a steady improvement in cryptocurrency regulation. To be considered by the Senate, the bill will include definitions and rules regarding cryptocurrency mining. This topic is very hot in Paraguay.
Paraguay advances Crypto Bill
Latam states are starting to take cryptocurrency seriously and have begun working on cryptocurrency legal frameworks. Paraguay has long been considered a “mining haven” by crypto mining firms due to its low electricity prices. A crypto bill has now been approved by the Chamber of Representatives of Paraguay. It aims to provide more information to these businesses.
Senate approved the bill with 41 votes in support and 11 against. Carlitos Rejala was one of the largest supporters of this bill and celebrated the development via social media. stating:
This is a huge leap BitcoinParaguay Second chamber just passed the bill proposal to establish a legal framework for mining bitcoins. 100 % Hydroelectric Renewable Power.
Regulation Specifics
According to the new law, cryptocurrency exchanges now have the right to be registered as entities under the supervision of SEPRELAD. The country’s anti-money laundering watchdog. Because the rule covers any individual or business that will trade, manage or broker crypto assets, and store them for third parties, P2P traders must also register. Crypto custody companies are also included.
This bill will have a positive impact on cryptocurrency mining. It will regulate energy supply and tariff collection, which will clarify an area that has not been regulated. These responsibilities are transferred to ANDE, The National Electricity Administration. They will determine the power rates in accordance with the mandate of this bill. This means that they can’t exceed 15% of the industrial rate.
The Senate of the United States will vote on the bill again. They will have up until 90 days for discussion and suggestions. If approved, then the bill is ready for approval by President Obama.
Let us know your thoughts on the recently approved Paraguayan cryptocurrency bill. Leave a comment below.
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