A cryptocurrency bill submitted to the Paraguayan Senate in July was approved. The text, which defines several important concepts, including virtual assets, and establishes the need for licenses for mining cryptocurrencies, will now be presented to the Deputy Chamber for discussion.
Paraguay could approve the crypto law by next year
A new cryptocurrency law has taken its first step towards enactment as law in Paraguay. The project presented in July was approved in the Paraguayan Senate after a heated discussion following reports from its promoter, Senator Fernando Silva Facetti. The politician too specified that the law aimed to:
… recognize the mining of virtual assets as an industry, [and] creates the basis for ensuring access to energy and requirements that ensure the formalization of an expanding sector.
In its main part, the legal text contains the definition of virtual assets, tokens, cryptocurrency mining and virtual asset service providers (VASPs). It also establishes the Ministry of Industry and Trade Authority, which is assisted by other state organizations in the application of the law.
Addressing mining and virtual asset service providers
The bill clearly recognizes the mining of cryptocurrencies as a legal activity and explicitly emphasizes:
Virtual asset mining is a digital and innovative industry. This industry will benefit from all the incentive mechanisms provided for in national legislation.
Paraguay is said to produce more than five times as much energy as it consumes. Because of this, it currently is eyes from several companies to the end of the establishment of cryptocurrency mining operations there. The new draft law aims to further clarify this area for interested parties by specifying the use of licenses approved by the Ministry of Industry and Trade only after receiving the industrial power consumption permit issued by the National Electricity Administration .
The bill also states that companies and individuals must obtain a license to trade or hold cryptocurrencies for third parties. This with the aim of complying with the KYC-AML-TF measures.
Facetti expected the bill is due to be examined by the deputy chamber next year, where it hopes it will be discussed with public and private companies to improve it if necessary.
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Source: Crypto News Austria