The Chamber of Senators of Paraguay passed a bill on Thursday that would regulate and commercialize crypto trading and mining activities in the country.
Paraguay’s Senate Approves Crypto Bill
Sen. Fernando Silva Facetti, one of three senators sponsoring the legislation, confirmed the approval on Twitter, saying that the bill now awaits deliberations from the Chamber of Deputies of Paraguay next year.
(1/3) Today, after an intense debate, the Senate @SenadoresPy approved todaya New Law Project which regulates the industry and commercialization of #Crypto assets #Bitcoin #Paraguay after …(open threat)
— FernandoSilvaFacetti (@FSilvaFacetti) December 17, 2021
According to Facetti, the bill, which received an intense debate from the Senate, aims to “regulate the industry and commercialization of crypto assets like bitcoin in Paraguay.”
Crypto Mining to Become an Industry
The crypto bill focuses on two major areas of the industry – cryptocurrency transactions and mining activities.
The senator noted that the legislation will recognize crypto mining as an industry while also establishing modalities that will ensure that miners have constant access to energy for their operations since the country currently has surplus electricity.
However, miners are required to get approval for the consumption of industrial power as well as an operating license, whether they are operating as private individuals or business entities.
If the bill becomes law, the Industry and Commerce Secretariat alongside the country’s National Securities Commission, Anti-Money Laundering Office, and National Electricity Administration will be responsible for regulating the crypto mining industry.
As for transacting with cryptocurrencies, the bill did not explicitly state how exchanging crypto would work, but Facetti said that “the National Securities Commission will create registration requirements for intervening agents for negotiation, compensation, custody, and intermediation in the securities market.”
This means that individuals or businesses seeking to provide crypto trading or related services will be required to file for approval from the commission.
Becoming a Crypto-friendly Country
Meanwhile, as Paraguay continues to take actionable steps towards regulating cryptocurrencies, Carlos Antonio Rejala, a Paraguayan lawmaker and one of the sponsors of the bill, has made it clear that the country does not intend to make Bitcoin a legal tender like El Salvador.
Instead, it wants to become a crypto-friendly country and a global crypto hub by providing regulations that will allow Paraguayans or foreigners to legally use or own digital assets.