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The Paraguayan Senate has approved a bill that will allow registered companies to use surplus electricity to mine cryptocurrencies.
The author of the cryptocurrency regulation bill, Paraguayan Senator Fernando Silva Facetti, tweeted that the law has been approved by the Paraguayan Senate. He added that the document now awaits discussion in the Paraguayan Chamber of Deputies in 2022.
Facetti clarified that the bill, actively discussed by the Senate, is aimed at “regulating the industry and the commercialization of crypto assets such as Bitcoin in Paraguay.” According to him, the bill focuses on two main areas of the industry: cryptocurrency transactions and mining.
The politician noted that the legislation recognizes cryptocurrency mining as an industry, and will also establish conditions that will provide miners with constant access to electricity for mining cryptocurrencies, since there is a surplus of electricity in the country. However, miners must obtain a permit for the consumption of industrial energy, as well as a license to operate, regardless of whether they operate as individuals or legal entities. If the bill is approved, the responsibility for regulating the mining industry will lie with the Secretariat of Industry and Commerce, the National Securities Commission, the Anti-Money Laundering Authority and the National Electricity Authority.
The document does not provide guidance on the conversion of digital assets, but “the National Securities Commission will create requirements for the registration of intermediaries for negotiating, compensating, storing and mediating in the securities market.” Individuals and legal entities wishing to provide cryptocurrency trading services or related services will need to apply to the National Securities Commission.
In November, the CEO of Chinese mining company Future Fintech said the lack of a legal framework prevents Chinese miners from considering Paraguay as a country for business relocation. Paraguayan Congressman Carlos Rejala introduced a bill on
regulation of mining and cryptocurrencies in the country, but the document was criticized by participants in the cryptocurrency industry.
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