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Paraguay: Senate passes bill to regulate crypto activities

Paraguay

TL; DR Breakdown

  • Paraguay passes bill to regulate crypto activities
  • The country is focusing on crypto mining activities
  • The bill will undergo a debate in 2022

Crypto regulation has been one of the most sensitive topics in the crypto market amongst different countries worldwide. The crypto market was originally designed to be decentralized and without regulation. However, some activities in the market have prompted regulators to look in this direction. In the latest move by Paraguay, the country has announced that it has passed a decree to regulate crypto amid widespread mining activities across the country.

Paraguay is focusing on crypto mining activities

According to several reports from local news stations in Paraguay, the senate has put pen to paper regarding the new regulation. In a statement by Fernando Silva Facetti, one of the brains behind the bill, the bill will undergo a debate at the Chamber of Deputies next year.

According to the bill, Bitcoin will never be recognized as a form of legal payment. In a recent interview with Carlitos Rejala, a Paraguayan congressman, he gave an insight into the key details that the bill contains. The bill included a proactive measure from regulators against entities mining Bitcoin across the country.

The bill will also provide consumers with massive protections while limiting risks of trading in the market. According to a peek, the industry and commerce arm of the ministry will work hand in hand with other regulatory bodies to monitor these activities. The National Electricity Administration will oversee that aspect in terms of its regulation.

The bill will undergo a debate next year

Although the bill did not specify whether it was talking about a crypto exchange, it mentioned that crypto service providers should keep records of their users. The bill puts into perspective that Paraguay uses only a third of the total energy that it produces every year. With this, the bill notes that the country will be able to use the energy that is not being put into use in the country.

The highlight of this part of the bill is that it seeks to allow Paraguay to enjoy the benefits of the massive energy available. Also, as mentioned above, everything will need to undergo a debate and approval process at the Chamber of Deputies next year. In a recent interview by congressman Rejala, Paraguay provides miners with one of the sweetest rates of using electricity worldwide. This is one of the major factors that has pushed mining companies into carrying out their activities in the country.

Owotunse Adebayo

Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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