On December 17, 2021, Paraguay’s Senate approved a cryptocurrency bill introduced in July. The provisions, which define several key terms, including virtual assets, and require licenses to mine cryptocurrencies, will now be sent to the Chamber of Deputies for further deliberation..
Senator Fernando Silva Facetti, promoter of the bill, revealed that it has been approved in the Paraguayan Senate after a controversial debate. According to the senator, the law also aims to encourage the growth of cryptocurrency mining activities through the use of surplus electricity generated in the country.
(1/3) Today, after an intense debate, the Senate @SenatorsPy approved todaya New Law Project which regulates the industry and commercialization of #Crypto assets #Bitcoin #Paraguay after …(open threat)
– FernandoSilvaFacetti (@FSilvaFacetti) December 17, 2021
(1/3) Today, after an intense debate, the Senate @SenadoresPy today approved a Bill that regulates the industry and commercialization of #Criptoactivos #Bitcoin #Paraguay after … (open threat)
The body of legislation includes a definition for virtual assets, tokens, cryptocurrency mining, and VASPs (virtual asset service providers). It also gives the Ministry of Industry and Commerce the authority to seek assistance from government agencies outside of its limits to enforce the law.
The bill explicitly states that cryptocurrency mining is a legal activity, noting that:
“Virtual asset mining is a digital and innovative industry. This industry will benefit from all the incentive mechanisms provided for in national legislation.”
Apparently, Paraguay produces more energy than it consumes. As a result, several companies are interested in establishing cryptocurrency mining operations there to exploit this potential surplus..
In July, Paraguayan Congressman Carlos Rejala and Senator Fernando Silva Facetti presented a bill on Bitcoin (BTC) in Congress, demonstrating the commitment of legislators to develop a comprehensive digital asset policy for your nation. The legislation has already been approved by the country’s Congress and will be debated in the Chamber of Deputies in 2022.
Due to local economic and fiscal challenges, especially in Argentina, Venezuela and Mexico, South America has emerged as a Viable hotbed for cryptocurrency adoption. For example, as their national fiat currencies crumble, the Argentines and the venezuelans have turned to digital alternatives like Bitcoin as a more viable payment option. Others, like El Salvador, have taken a completely different approach; President encouraged the use of BTC in the village.
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