La Chamber of Deputies passed, with amendments, the Senate bill regulating crypto, now it’s back to the Senate again.
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- Paraguayan deputies approved 40 to 12 the crypto bill.
- The aim is to turn Paraguay into an international mining a process where blocks are added to a blockchain, verifying transactions. It is also the process through which new bitcoin or some altcoins are created. center.
- The price of electricity in Paraguay is the lowest in Latin America.
Paraguay continues to make strides in the adoption of cryptocurrencies, especially as it looks to become an international mining hub, aided with the huge energy potential it has. Many crypto mining companies see it as a potential destination. The legislation is therefore considered necessary.
As we have told, in December 2021 the Senate of the South American country passed a bill to regulate both mining and trading of cryptocurrencies. While it was a big step, it was actually the first in a list of legislative actions until the bill finally becomes law.
Yesterday the second step was taken: the Chamber of Deputies of the Paraguayan Congress, with a vote of 40 to 12,aprobó el proyecto de ley propuesto por el Senado that would regulate the mining and trading of cryptocurrencies. However, it made some modifications to it.
Back to the Senate
Now that the Chamber of Deputies has approved this legislative framework, the bill goes back to the Senate, which will approve, modify or reject it. After passing to the Senate, again the Deputies have to approve the changes and then, finally, the approved bill goes to the Executive Branch.
In other words, the final fate of the legislation is months away.
The purpose of this bill is to making Paraguay an international hub for miners contributors to a blockchain taking part in the process of mining. They can be professional miners or organizations with large-scale operations, or hobbyists who set up mining rigs at home or in the office. thanks to the country’s low electricity costs of about five cents per kilowatt-hour, which is the lowest electricity rate in Latin America.
Should the legislation be formally adopted into law, it will oblige any natural or institutional person to apply for an authorization for the industrial consumption of electricity, after which they will have to apply for a license.
In addition to that, the law also provides for the creation of a registry for any natural or legal person who intends to engage in cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. trading or custodial custodial cryptocurrency businesses are the ones that are in possession of their customers’ funds for the duration of the use of their services. services for third parties. However, the concept of exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. still seems to be missing.
Pros and cons
Finbold The bill also faced strong opposition. One of the critics is Congressman Tadeo Rojas, who reported that the budget committee of the Chamber of Deputies was also against it. He added that the positive effect on employment growth is low compared to the energy consumption required by cryptocurrency mining.
On the other hand, Congressman Sebastian Garcia argued that the bill would set caps to align energy consumption with availability.
Paraguay was the first among the top three countries predicted by the international CoinMarketCap as the next to adopt cryptocurrencies as legal tender, followed by Venezuela and Anguilla.
If you want to see the discussion in the Chamber of Deputies you can do it here:
Sources:Sesión del Congreso, ABC , Finbold , archivo
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