The Paraguay Senate has finally passed a bill to regulate the trading and mining of cryptocurrencies in the Latin American country. The new legislation will be discussed by the Chamber of Deputies in 2022.
Fernando Silva Facetti, the Paraguayan senator, took to Twitter to say that the bill has finally been approved. He said the new legislation aims to recognize the mining of virtual assets as an industry. The bill actually establishes the ground. It guarantees miners access to energy and requirements. Moreover, it guarantees the formalization of the expanding sector.
Cryptocurrency miners, as per the bill, will have the advantage of thousands of megawatts that the Latin American country has in surplus. Paraguay has abundant hydroelectric energy, which it shares with Brazil. Persons or companies involved in crypto mining will have to make a formal request to the government for energy usage. After they have been approved, they will have to apply for a license.
“Regarding transactions with crypto assets, the National Securities Commission will establish the registration requirements for intervening agents for negotiation, compensation, custody and intermediate in the securities market,” Facetti tweeted.
The senator highlighted that the proposal will be thoroughly analyzed with the public and private sectors. Through this, the government wants to improve the bill for a better effect. The cryptocurrency industry in Paraguay will be jointly supervised by the Anti-Money Laundering Office, National Securities Commission, and the National Electricity Administration.
Furthermore, Paraguay is keen to make bitcoin a legal tender in the country. And this will be discussed by the government in 2022.