Paraguay is steadily taking the matter of cryptocurrency regulation forward. Back in December, a crypto bill had been introduced and the Chamber of Representatives have given it the greenlight. The bill outlines the rules and definitions pertaining to crypto mining, which has become one of the hottest topics in the country. This is primarily because Paraguay is known to have very low costs of electricity and now the bill will move forward to the Senate. It appears that cryptocurrencies are being taken seriously by Latam countries, due to which they are working on developing and approving legal frameworks for this space.

The same appears to be applicable to Paraguay which has become a crypto mining haven for companies because of the cheap costs of electricity. The Chamber of Representatives in the country gave their approval for the bill, as this would assist in providing some clarity where these companies are concerned. The Senate had given its approval for the bill last year in December and it recently got approval once more with 41 and 11 votes in favor and against. This development was celebrated by one of the bill’s biggest supporters, CarlitosRejala. Taking to social media, Rejala said that it was a big advancement for bitcoin in the country.

It was further said that now a legal framework would be developed for overseeing bitcoin mining and they would be able to use renewable power to do so. According to the new bill, crypto exchanges would now be granted the status of entities in Paraguay, which means they would be required to register themselves with SEPRELAD as virtual asset service providers (VASPs). This is the money-laundering authority of Paraguay. Registration would also be required of P2P traders because the rules are now applicable to any individual or firm that will be involved in storing, exchanging, managing, brokering or trading crypto on behalf of third parties.

This means that crypto custody companies also fall under the bill. It would also be beneficial for crypto mining because matters relating to energy supply as well as the taxes imposed by the government would also be regulated. It would provide clarification on where crypto mining is concerned, as it still remains unregulated in Paraguay. The responsibility of doing so would be handed to the National Electricity Administration called ANDE. They will come up with the power rates that would be applicable, but they also need to comply with the bill.

It states that the power rates applicable to mining companies cannot be more than 15% of the rates set for industries. The crypto bill will once more move to the Senate for about 90 days during which it can be discussed and changes and amendments can be made. If it is approved by the Senate once more, the bill would be ready for presidential sanction. It would undoubtedly be a big achievement for Paraguay and would also help the country in tapping into the potential of the crypto market that may be struggling right now, but is expected to grow in the future.