A cryptocurrency bill submitted to the Paraguayan Senate in July has been approved. The text defines several important concepts, including virtual assets, and determines the necessity of a license to mine cryptocurrency. It will now enter the deputy chamber for discussion.

Paraguay may approve encryption law next year

A new cryptocurrency bill is the first step to be approved as law in Paraguay. The project was launched in July, Officially recognized According to a report by its sponsor and Senator Fernando Silvafititi, it was held in the Paraguayan Senate after intense discussions.Politicians also statement This law aims to:

… Regard the mining of virtual assets as an industry, [and] Lay the foundation to guarantee access to energy and guarantee the requirements of expanding the formalization of the sector.

In its main body, the legal text includes definitions of virtual assets, tokens, cryptocurrency mining, and virtual asset service providers (VASP). In addition, it established the power of the Ministry of Industry and Commerce, which will receive assistance from other organizations in the country to apply the law.

Solve the problems of mining and virtual asset service providers

The bill clearly recognizes that cryptocurrency mining is a legal activity and clearly emphasizes:

Virtual asset mining is a digital and innovative industry. The industry will benefit from all incentives provided by national legislation.

It is said that Paraguay produces more than five times the energy it uses.Due to this fact, it is currently With eyes Several companies ended the establishment of cryptocurrency mining operations there. The new bill aims to further clarify this area for stakeholders and establish a use license approved by the Ministry of Industry and Commerce, which can only be used after obtaining an industrial power authorization issued by the State Electricity Administration. .

The bill also stipulates that companies and individuals need to obtain licenses for third-party transactions or to provide cryptocurrency custody. This is to comply with KYC-AML-TF measures.

section expect The bill will be reviewed by the Deputy House next year, where he hopes to discuss it with public and private companies to improve it if needed.

What do you think of the new cryptocurrency bill approved by the Paraguayan Senate? Please let us know in the comments section below.

Sergio Goshenko

Sergio is a cryptocurrency journalist based in Venezuela. He described himself late and entered the crypto space when prices rose in December 2017. With a background in computer engineering, living in Venezuela, and being affected by the cryptocurrency boom at the social level, he offers a different perspective on the success of cryptography and how it can help people without bank accounts and underserved people.

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