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Tuesday, March 28, 2023

Chamber of Representatives in Paraguay Advances Crypto Bill

Chamber of Representatives in Paraguay Advances Crypto Bill – Cryptocurrency regulation in Paraguay is proceeding steadily, with the approval of a crypto bill filed in December by the country’s Chamber of Representatives. The bill, which includes definitions and rules for cryptocurrency mining, which has been a big topic in Paraguay due to low electricity costs, will be sent to the Senate for discussion.

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Cryptocurrencies are being taken more seriously in Latam countries, which are now attempting to ratify cryptocurrency legal frameworks. This is the situation in Paraguay, a country that has long been viewed as a mining haven by cryptocurrency mining businesses due to the country’s cheap electricity prices.

The Paraguayan Chamber of Representatives has just passed a crypto bill initiative that aims to bring more transparency to these companies.

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The bill, which was approved by the Senate in December of last year, received 41 votes in favor and 11 votes against it. Carlitos Rejala, one of the bill’s most ardent supporters, expressed this development on social media, stating:

“In Paraguay, bitcoin has taken a big leap. The bill proposal to provide a legal framework for bitcoin mining was just adopted by the second chamber of Congress. Hydroelectricity is a renewable energy source that is 100 percent renewable.”

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Cryptocurrency exchanges will then be regulated as entities, with the obligation to register their operations as virtual asset service providers with SEPRELAD, the country’s anti-money laundering watchdog.

Because the legislation applies to anyone who trades, manages, brokers, exchanges, or stores crypto assets for third parties, P2P traders will also be required to register their operations. Crypto custody firms are included in this category.

This bill would also aid cryptocurrency mining, as it will regulate electricity supplies and tariffs which the government would be able to collect, clarifying an activity that is currently unregulated in the country.

The bill delegated these tasks to ANDE, the National Electricity Administration, which will set the electricity tariffs in accordance with the bill’s mandate, which states that they cannot exceed 15% of industrial rates.

Also Read: Russian Court Recognizes Cryptocurrency as Means of Payment, Prosecutors See Precedent

The bill will now be sent to the country’s Senate, which would have up to 90 days to debate its contents and suggest changes to the document’s structure. The bill will then be ready for presidential sanction if it is approved.

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