The Senate of Paraguay approved a bill, on Thursday, to regulate crypto mining and trading in the country. It has been given the go-ahead by both chambers. If the President gives the bill the nod, Paraguay would go on to become the next destination for crypto mining companies.
Fernando Silva Facetti, Paraguay’s Minister of Technology, Information, and Communication, tweeted that the new law establishes obligations, rights, and warranties to investors, the consumer, and the government. It introduces two significant changes in taxation and energy usage of crypto miners. The new law penalizes individuals or legal entities carrying out mining or providing services with crypto without the corresponding authorization.
Paraguay’s National Electricity Administration will enable the energy supply, while the Secretariat for the Prevention of Money or Asset Laundering will supervise the investment process carried out by crypto companies. Moreover, the National Securities Commission will be in charge of the commercialization of the obtained assets. Individual and corporate miners, as per the new law, have to request authorization for industrial electricity consumption. They have to apply for a license also. It creates a registry for any individual or legal entity wanting to provide crypto trading or custody services for third parties.
Through the new law, crypto miners will get additional discounts on the already cheap electricity. Crypto mining operators will also be exempt from paying VAT. But miners will be responsible for other tax fees in the country.