A cryptocurrency bill introduced in July to the Senate of Paraguay has been approved. The text, which defines several important concepts including virtual assets, and establishes the need for licenses to mine cryptocurrencies, will now advance to the Deputy Chamber to be discussed.
Paraguay Could Approve Crypto Law by Next Year
A new cryptocurrency bill has taken its first step toward being approved as law in Paraguay. The project, which was introduced in July, was approved in the Paraguayan Senate after a heated discussion, according to reports from its promoter, Senator Fernando Silva Facetti. The politician also stated that the law aimed to:
…recognize mining of virtual asset as an industry, [and] establishes the grounds to guarantee access to energy and requirements that guarantee the formalization of an expanding sector.
In its body, the legal text includes the definition of virtual assets, tokens, cryptocurrency mining, and virtual asset service providers (VASPs). Further, it establishes the authority of the Ministry of Industry and Commerce, which would receive aid from other organizations in the state to apply the law.
Addressing Mining and Virtual Asset Service Providers
The bill makes a clear recognition of cryptocurrency mining as a legal activity, explicitly stressing:
Virtual asset mining is a digital and innovative industry. This industry will benefit from all incentive mechanisms provided in national legislation.
Paraguay is said to produce more than five times the amount of energy it uses. Due to this fact, it is currently being eyed by several companies to the end of establishing cryptocurrency mining operations there. The new bill aims to further clarify this field for interested parties, establishing the use of licenses that would be approved by the Ministry of Industry and Commerce, only after having received the industrial electricity consumption authorization, that would be issued by the National Administration of Electricity.
The bill also establishes the need for companies and individuals to receive a license for trading or offering custody of cryptocurrencies for third parties. This with the objective of complying with KYC-AML-TF measures.
Facetti expects the bill to be considered by the Deputy Chamber next year, where he hopes it will be discussed with public and private companies to improve it if needed.
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