Paraguay saw an introduction of the crypto bill a couple of months ago, and now the bill has taken its first step to becoming a law.
The Crypto bill of Paraguay defines several essential concepts, including virtual assets and establishes the necessity for licenses to mine cryptocurrencies. Moreover, the bill will now advance to the Deputy Chamber for further discussion.
Silva Facetti, a Paraguayan senator, had introduced this project in July. Talking about the bill, he said,
“…recognize mining of virtual asset as an industry, [and] establishes the grounds to guarantee access to energy and requirements that guarantee the formalization of an expanding sector.“
The legal text includes the definition of virtual assets, tokens, crypto mining in Paraguay. Moreover, the bill marks crypto mining as a legal activity, stating:
“Virtual asset mining is a digital and innovative industry. This industry will benefit from all incentive mechanisms provided in national legislation.“
Currently, Paraguay produces five times the required energy it consumes. Because of this, many companies are looking to set up crypto mining operations. But there is a catch! Individuals or companies interested in bitcoin mining will have to request authorization for industrial energy consumption. However, after the approval is granted, the entity would still need to go further and apply for a license to mine bitcoin.
Finally, the bill will also establish the need for companies and individuals to receive licenses for trading/offering custody of crypto for third parties. Again, all of this complies with KYC-AML-TF measures.