An approved cryptocurrency bill was presented to the Senate of Paraguay in July. This text defines many important concepts, including virtual assets and establishes that licenses are required to mine cryptocurrencies. It will be presented to the Deputy Chamber for discussion.
Paraguay could approve Crypto Law within the Next Year
Paraguay has approved a cryptocurrency bill as the first step in its journey to becoming law. According to Senator Fernando Silva Facetti, the project was presented in July and was passed by the Paraguayan Senate. According to Senator Fernando Silva Facetti, the politician was also present. statedThat is what the law was intended to accomplish:
…recognize mining of virtual asset as an industry, [and]It establishes the conditions for accessing energy, and the requirements to formalize an expanding sector.
The legal text contains the definitions of tokens and cryptocurrency mining as well as the names of service providers for virtual asset services (VASPs) in its body. It also establishes authority for the Ministry of Industry and Commerce to enforce the law.
Solution for Mining and Virtual Asset Service Providers
This bill clearly recognizes cryptocurrency mining as legal activity and emphasizes:
The digital industry of virtual asset mining has the potential to be innovative and transformative. The industry can benefit from any incentive mechanism provided by national legislation.
Paraguay can produce five times more energy than the country consumes. Many companies are currently looking into it to stop cryptocurrency mining operations being established there. This bill will further clarify the matter for all interested parties. It would allow licenses to be authorized by the Ministry of Industry and Commerce only after receiving the Industrial Electricity Consumption Authorization, which would be issued through the National Administration of Electricity.
This bill makes it mandatory for individuals and companies to obtain a license for dealing or offering custody of cryptocurrency for third parties. This is done in compliance with KYC AML-TF.
Facetti expectsNext year the Deputy Chamber will consider the bill. If necessary, he plans to discuss it with the public and private sector to amend it.
Let us know your thoughts on the Senate’s new crypto bill in Paraguay. Comment below.
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