Cryptocurrency regulation in Paraguay is progressing steadily, as a crypto bill introduced in December has been approved by the Chamber of Representatives in the country. This bill contains rules and definitions for cryptocurrency mining. It is a hot topic in Paraguay because of its low electricity prices.

Paraguay Advances Crypto Bill

Latam nations are beginning to view cryptocurrencies more seriously and are working to approve cryptocurrency legal structures. Paraguay has long been considered a mining haven for cryptocurrency miners due to its low electricity prices. Now, a crypto bill project that seeks to bring more clarity to these companies has been approved in the Chamber of Representatives of Paraguay.

The bill, which was approved in December last year by the Senate, was approved with a voting record of 41 votes in favor and 11 votes against. Carlitos Rejala, one of the biggest supporters of the bill, celebrated this development on social media, stating:

A big leap for bitcoin in Paraguay. The second chamber of Congress just approved the bill proposal for creating a legal framework for bitcoin mining. 100% Hydroelectric renewable power.

Regulation Specifics

The new bill states that cryptocurrency exchanges are now regulated as entities and must register their operations with SEPRELAD (the country’s money laundering watchdog). Because the rule applies to anyone or company who will trade, manage, broker or exchange crypto assets for third party, P2P traders must also register their operations. This includes crypto custody companies.

Cryptocurrency Mining will also be benefiting from this bill. It would regulate matters related the energy supply and the tariffs the government can collect. This clarifies an activity that is currently not regulated in the country. The bill transfers these responsibilities to ANDE, the National Electricity Administration, which will establish the power rates complying with the mandate in this bill, which says these cannot be over 15% of the industrial rates.

The bill will now be passed again to the Senate of the country, which will have up to 90 days to discuss the contents and propose changes to the structure of the document. If approved, the bill can be submitted for presidential approval.

What do you think about the newly approved Paraguayan cryptocurrency bill? Please leave your comments below.

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