The Senate of Paraguay has adopted a cryptocurrency measure filed in July on December 17, 2021.
The provisions, which define many essential terminologies, including virtual assets and need permits to mine cryptocurrencies, have been referred to the Deputy Chamber for more consideration.
The bill’s sponsor, Sen. Fernando Silva Facetti, stated that it was passed in the Paraguayan Senate following a heated discussion.
Promoting cryptocurrency
The senator said the law also aims to promote the expansion of crypto mining by utilizing the country’s surplus electricity.
Virtual assets, tokens, cryptocurrency mining, and VASPs (virtual asset service providers) are all defined in the legislation’s body.
It also empowers the Ministry of Industry and Commerce to request assistance from government organizations outside of its jurisdiction in order to put the law into effect.
According to reports, Paraguay generates more energy than it consumes. As a result, several companies are considering launching cryptocurrency mining facilities in the area in order to take advantage of the possible surplus.
Congressman Carlos Rejala and Facetti introduced a Bitcoin (BTC) bill in July, expressing the politicians’ commitment to developing a comprehensive digital asset framework for their country.
A new legislation
The country’s Congress has now enacted the legislation, which will be reviewed in the Chamber of Deputies in 2022.
South America has emerged as a plausible hotbed for cryptocurrency adoption, owing to local economic and budgetary issues, particularly in Argentina, Venezuela, and Mexico.
Argentinians and Venezuelans, for example, have turned to digital alternatives like Bitcoin as a more feasible payment option as their national fiat currencies have crumbled.
Others, such as El Salvador, have taken an entirely different approach, with the president urging people to use BTC.
Image courtesy of Cointelegraph News/YouTube
Source: https://bitcoinerx.com/blockchain/paraguay-inches-closer-to-regulating-digital-currency/
