According to a recent release, a widely awaited measure proposing to regulate mining and trading in Bitcoin and other crypto-assets in Paraguay has finally received approval from the country’s Senate. Senator Fernando Silva Facetti, one of the measure’s co-authors, revealed on his official Twitter handle that the issue will be considered in Paraguay’s Chamber of Deputies in 2022.
Politician Carlitos Rejala expresses his triumph on Twitter. The bill was introduced the in parliament this year by Carlitos Rejala.
As per the bill, the Industry and Commerce Secretariat, in collaboration with the Anti-Money Laundering Office and the National Securities Commission, would monitor crypto mining in the nation.
In addition, the National Electricity Administration will be involved in the regulation of the activity. According to Paraguayan Congressman Carlitos Rejala, the cost of power in the South American country is the lowest in the area, costing only $0.05 per kilowatt-hour, and virtually 100 percent of energy output comes from hydroelectric sources.
Rejala shared an insight into the draught law that was issued earlier this year in an interview with a big media business in July of this year. The law hinted at tighter regulatory oversight of bitcoin mining by the country’s officials, as well as protecting investors from firms that provide bitcoin services.
Meanwhile, Youtuber and crypto enthusiast Dennis Porter stated in his Tweet that Paraguay only uses 1/3rd of its total energy which could benefit bitcoin mining in the near future, ” Paraguay only uses 1/3rd of the energy they produce. They have the highest per capita surplus in the world. All from green energy sources.”
According to the law, miners – whether individuals or businesses – will need to acquire authorisation for industrial power usage before applying for a licence.
According to the bill, the Industry and Commerce Secretariat of Paraguay would permit and monitor crypto mining within the nation, with the National Securities Commission, Anti-Money Laundering Office, and National Electricity Administration also regulating the practice.
Despite the absence of the idea of exchange, the law provides a register for any individual or legal body intending to provide crypto trading or custody services to third parties.
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