Although this is just a first step on the road ahead, the bill provides clear provisions for the commercialization of cryptocurrencies and mining of such assets in Paraguay. It still remains for further debate in 2022 for which a readjustment will be made based on comments submitted by both the public and private sectors.
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The Senate of Paraguay, the main legislative body of the South American country, this week approved a bill that regulates the mining and marketing of cryptocurrencies locally.
Bill passed in Paraguay
This was confirmed in a message thread by Paraguayan senator and co-author of the bill, Fernando Silva Facetti, who shared the following:
“… After intense debate, the Senate @SenadoresPy approved today a new bill that regulates the industry and commercialization of #cryptoassets #Bitcoin #Paraguay… This new legislation aims to recognize virtual asset 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. as an industry, stabilizing the ground to guarantee access to electric power, and the requirements to ensure the formalization of this expanding sector… With respect to transactions with cryptoassets, the National Securities Commission will establish the requirements at the level of registration for trading, clearing, custody custody is a financial institution's legal capacity to keep and preserve financial assets for its clients to avoid asset theft or loss. and brokerage agents in the securities market.”
However, this is only the first part of the way, as Silva said that next year, Congressman Carlos Rejala will be the one to lead the debate on the project, just waiting for it to be considered by both the public and private sector, readjusting itself precisely to ensure the best conditions for all involved.
….and now the Chamber of Deputies @DiputadosPy @carlitosrejala will next year debate this project, where we hope the proposal will be thoroughly analyzed with the public and private sector, improving it if necessary, for its effective approval.
– FernandoSilvaFacetti (@FSilvaFacetti) December 17, 2021
The implications of this bill
According to critics and analysts, the approval of this bill has great implications for the crypto sector locally, precisely because it establishes clear rules so that participants in industries such as mining companies can legally access the electricity supply, in addition to applying for licenses to ensure their operations. The latter is especially attractive precisely because of the low cost of electricity in the South American country, which could be very attractive for companies wishing to establish their operations in search of better conditions.
Among the provisions established is that the Secretariat of Industry and Trade of Paraguay will be the body that oversees mining activities at the local level, in support the opposite of Resistance, it is a threshold that crypto’s price doesn’t fall below. of the National Securities Commission, the Anti-Money Laundering Office and the National Electricity Administration, who will also be involved in ensuring that the relevant provisions are complied with.
Regarding cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. trading, although it is not an aspect that is precisely defined, the bill proposes a registry for persons and/or entities wishing to offer this type of services, including also the custody of digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currencies within such provisions.
El Salvador” effect
As we commented in a previous edition, the legislative actions promoted by the representatives of Paraguay are part of what some describe as the “El Salvador” effect, since the officialization of Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. as a local currency currency is a medium of exchange that defines value. in the Central American country gave greater visibility to the regulatory aspects associated with digital currencies in nearby countries.
As for Paraguay, although it is not considering a measure as forceful as the officialization of the Bitcoin or any other cryptocurrency, what is being attempted is to establish clear conditions so that interested operators can carry out the activities associated with this sector.
In July this year, Senator Rejala introduced a bill that sought to regulate the ownership and registration of both cryptocurrency operations and the trading of digital currencies in the country.
- This year almost tripled the number of ATM Bitcoin ATMs in the world, Latin America is still lagging behind except El Salvador
- More companies look to Paraguay as a Bitcoin mining destination
- Paraguay’s Bitcoin Law draft leaked and it doesn’t look like El Salvador’s
Fuente: CoinDesk , Twitter
Version by Angel Di Matteo / DiarioBitcoin
Imagen de Unsplash
