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Law regulating Bitcoin in Paraguay was approved by the Senate

The project, which does not give Bitcoin legal tender in Paraguay, will be discussed by the country’s Chamber of Deputies in 2022.

A Paraguayan bill, which aims to regulate the trade and mining of Bitcoin and cryptocurrencies in the country, was okay in the Senate on Thursday. Senator Fernando Silva Facetti, co-author of the project, said in twitter that the legislation now goes to the Chamber of Deputies of Paraguay, where it will be debated in 2022.

The bill does not make Bitcoin legal tender in Paraguay. As the Webitcoin portal published in July, Paraguayan deputy Carlitos Rejala revealed about the Bitcoin legislation, in which he suggested greater regulatory certainty from the country’s regulators in relation to Bitcoin mining is an overarching goal of offering protection to investors of companies that offer Bitcoin services.

As Rejala said at the time:

With this, we want to welcome the innovation of cryptocurrencies in Paraguay to the world. This is the result of very strong and arduous teamwork by many experts in the field, both local and foreign.

However, it remains unclear whether Paraguay’s long and complicated bill will welcome Bitcoin and cryptocurrency innovation.

See too: Polkadot could have a major breakthrough in its ecosystem in 2022

The bill approved by the Paraguayan Senate establishes that individuals or legal entities interested in Bitcoin mining must request authorization for industrial energy consumption. However, after approval is granted, the entity would still need to go further and apply for a license to mine Bitcoin.

According to the bill, Bitcoin miners could enjoy “thousands of megawatts that Paraguay currently has as a surplus” if it complies with the country’s regulations. The text stated that the sector would be jointly regulated by the Paraguayan Secretariat of Industry and Commerce, the National Securities Commission, the Office for the Prevention of Money Laundering and the National Electricity Administration.

Said Silva Facetti in another tweet:

With regard to transactions with cryptocurrency assets, the National Securities Commission will establish the registration requirements of the intervening agents for trading, clearing, custody and intermediation in the securities market.

Source: Bitcoin Magazine

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