- The Senate of Paraguay passed an extensive Cryptocurrency Bill
- The regulation not only defines digital assets, but also introduces measures to settle them
- If the bill is adopted, mining in the country will be legalized, but subject to licensing
- The government is also discussing the possibility of redirecting surplus electricity to farms in order to attract more contractors
Last Friday, 10 December, Paraguay’s Senate passed a cryptocurrency bill. It aims to provide a clear definition of digital assets, create a modern and comprehensive regulatory framework, and stimulate mining within the country.
The authors of the regulation are Fernando Silva Facetti and Carlos Reiala. They submitted the bill to the Senate in July this year. The bill was passed, but it sparked a fierce debate among politicians.
In fact, the new law legalizes not only cryptocurrencies, but also their mining within Paraguay. He also introduces a single register for licensing companies involved in this industry.
“Virtual asset mining is a digital and innovative industry. This industry will benefit from all incentive mechanisms provided for by national legislation. ”
In addition In addition, it gives the country’s Ministry of Industry and Trade the authority to turn to the state for assistance in investigating crimes in this area outside the jurisdiction of the department.
Another item mentioned in the law is surplus electricity. Now most of it (about 116 is sent for export. Revenues under this item accounted for 6% of Paraguay’s GDP in 2021. Facetti and Reyala propose to channel the surplus to mining farms.
After signing the bill in the Senate, it was sent to the House of Representatives. The MPs will discuss the bill in the first quarter 2022. If accepted, Paraguay will become another hub for the development of the crypto industry in Latin America. The economic recession and the rapid depreciation of funds have led to a surge in the popularity of cryptocurrencies in this region. In El Salvador, the government has completely legalized BTC.