In December 2022, the Senate of Paraguay Approved the initial version of the bill on mining and trading in cryptocurrencies. However, additional changes were made in the spring. After that, it was adopted by the deputies and was submitted to the Senate for approval, where it was signed the other day. The next step is the signature of the President, who can approve the regulatory law in the near future or use the right of veto.
New law for mining in Paraguay
The current version of the bill indicates that the ministry of industry and trade will act as the main controller in the market. Officials of the Ministry will take over the functions of supervision and punishment of individuals and legal entities engaged in mining, providing services with cryptocurrencies without permits.
It is also tasked with ensuring that the National Electricity Commission has an adequate level of energy supply for the industry. The Secretariat for the Prevention of Money Laundering will monitor the investment process of cryptocurrency startups. And the national Securities Commission will be responsible for the commercialization of all received assets.
There are provisions in the law concerning miners. Each of the miners, whether an individual or a company, will be required to request permission to consume electricity. They will also have to apply for a license for such activities.
It is planned to create a registry for those who will mine cryptocurrencies in Paraguay. The authorities expect that the law will also attract miners from other countries. Electricity tariffs in the country are low – 5 cents per 1 kWh.
A well-known company from Canada, BITF, is already operating in Paraguay. It is located in the city of Villarica, in the south-central part of the South American country.
If the law is signed by the President of Paraguay, then the country’s economy may receive additional investments, new jobs will be created. It remains only to wait for the verdict of the head of state. Most likely, he will approve the law next week.
Author: Vadim Gruzdev, Analyst Freedman Club Crypto News
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