The bill, which does not make bitcoin legal tender in Paraguay, will be discussed by the country’s Chamber of Deputies in 2022
A Paraguayan bill seeking to regulate the trading and mining of Bitcoin and cryptocurrencies in the country passed the Senate on Thursday. Senator Fernando Silva Facetti, a co-author of the bill, said on Twitter that the legislation now heads to Paraguay’s Chamber of Deputies, where it will be debated in 2022.
“Regarding transactions with crypto assets, the National Securities Commission will establish the registration requirements for intervening agents for negotiation, compensation, custody, and intermediation in the securities market,” Silva Facetti said in another tweet.
Miners – either individuals or companies – will need to request authorization for industrial electricity consumption and then apply for a license, the bill notes. Paraguay’s Industry and Commerce Secretariat will enable and supervise crypto mining within the country, according to the bill, with the country’s National Securities Commission, Anti-Money Laundering Office and National Electricity Administration also regulating the activity.
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.
According to the bill, the Industry and Commerce Secretariat will be in charge of overseeing crypto mining in the country, with the support of the Anti-Money Laundering Office and the National Securities Commission. Meanwhile, the National Electricity Administration will be involved in the activity’s regulation.
The highlight of this part of the bill is that it seeks to allow Paraguay to enjoy the benefits of the massive energy available. Also, as mentioned above, everything will need to undergo a debate and approval process at the Chamber of Deputies next year. In a recent interview by congressman Rejala, Paraguay provides miners with one of the sweetest rates of using electricity worldwide. This is one of the major factors that has pushed mining companies into carrying out their activities in the country.
