Paraguay takes another step towards digital currency regulation

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Last Friday, the Senate of Paraguay approved a cryptocurrency bill introduced in July. The provisions, which define several key terms, including virtual assets and call for licenses to mine cryptocurrencies, will now be sent to the Chamber of Deputies for further deliberation.

Senator Fernando Silva Facetti, the bill’s sponsor, revealed that it was passed in the Paraguayan Senate after a controversial debate. According to the senator, the law also aims to promote the growth of crypto mining activities by using the surplus electricity generated in the country.

The body of legislation includes a definition of virtual assets, tokens, cryptocurrency mining, and VASPs (virtual asset service providers). It also grants the Ministry of Industry and Commerce the power to seek help from government agencies outside its borders to implement the law.

The bill explicitly states that mining cryptocurrency 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. “

Paraguay would product more energy than it consumes. As a result, several companies are interested in establishing cryptocurrency mining operations there to exploit this potential surplus.

Related: Mass Adoption Looms As South America’s Second Largest Company Accepts Crypto Payments

In July, Paraguayan Congressman Carlos Rejala and Senator Fernando Silva Facetti introduced a Bitcoin (BTC) bill to Congress, demonstrating the commitment of lawmakers to develop a comprehensive digital asset policy for their country. The legislation has now been passed by the country’s Congress and will be discussed in the Chamber of Deputies in 2022.

Due to local economic and fiscal challenges, particularly in Argentina, Venezuela and Mexico, South America has become a viable hotbed for cryptocurrency adoption. For example, as their national fiat currencies collapsed, Argentines and Venezuelans have turned to digital alternatives like Bitcoin as a more viable payment option. Others, like El Salvador, have taken a completely different approach, with the president encouraging the use of BTC on people



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