Home News Paraguay moves a step closer to regulating digital currency

Paraguay moves a step closer to regulating digital currency

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A cryptocurrency bill submitted in July acquired approval by the Paraguayan Senate on Dec. 17, 2021. The rules, which define a number of crucial words, including virtual assets and call for mining licences for cryptocurrencies, will now be referred to the Deputy Chamber for additional consideration.

The bill’s proponent, Senator Fernando Silva Facetti, said that it had been passed by the Paraguayan Senate following a lengthy debate. The measure, according to the senator, also aims to promote the expansion of crypto mining by utilising the country’s surplus electricity.

Virtual assets, tokens, cryptocurrency mining, and VASPs are all defined in the legislation’s main body (virtual asset service providers). It also gives the Ministry of Industry and Commerce the authority to seek assistance from government agencies outside of its jurisdiction in order to carry out the law’s provisions.

The bill expressly declares crypto mining to be a legal activity, stating:

“Virtual asset mining is a cutting-edge, digital business. All incentives granted by national legislation would favour this business.”

According to reports, Paraguay produces more energy than it consumes. As a result, some companies are considering launching cryptocurrency mining operations in the area in order to profit from the possible surplus.

Paraguayan Congress to debate the bill in 2022

Paraguayan Congressman Carlos Rejala and Senator Fernando Silva Facetti introduced a Bitcoin (BTC) bill in Congress in July. Expressing their commitment to developing a comprehensive digital asset regulation for their country. The bill passed by the country’s Congress and will be under discussion in the Chamber of Deputies in 2022.

South America has emerged as a feasible hub for bitcoin adoption thanks to local economic and fiscal issues. Particularly in Argentina, Venezuela, and Mexico. Argentinians and Venezuelans, for example, have turned to digital alternatives. Such as Bitcoin as a more realistic payment option since their national fiat currencies have collapsed. Others, such as El Salvador, have taken an entirely different approach, with the president urging people to use BTC.

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