Chamber of Representatives in Paraguay Advances Crypto Bill
May 27th, 2022
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. The bill, which contains definitions and rules for cryptocurrency mining, one of the hot topics in Paraguay due to the cheap electricity costs, will be passed to the Senate to be discussed.
Paraguay Advances Crypto Bill
Latam countries are taking cryptocurrencies in a more serious light, and are now working to approve cryptocurrency legal frameworks. This is the case of Paraguay, a country that has been traditionally seen as a mining haven by cryptocurrency mining companies due to the cheap electricity costs the country features. 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.
The new bill stipulates that cryptocurrency exchanges will now be regulated as entities, having the obligation of registering their operations as virtual asset service providers to SEPRELAD, the money laundering watchdog of the country. P2P traders will also have to register their operations because the rule applies to any person or company that is going to trade, manage, broker, exchange, or store crypto assets for third parties. This also includes crypto custody companies.
Cryptocurrency mining will also benefit from this bill, as it would regulate matters related to the energy supply and the tariffs that the government will be able to collect, clarifying an activity that is still 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. Then, if approved, the bill will be ready for presidential sanction.