Paraguay’s Bitcoin Bill Passes Senate

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A Paraguayan bill aimed at regulating the trading and mining of Bitcoin and cryptocurrencies in the country was adopted by the Senate on Thursday. Senator Fernando Silva Facetti, co-author of the bill, said on Twitter that the legislation is now heading to the Paraguayan Chamber of Deputies, where it will be debated in 2022.

The bill does not make bitcoin legal tender in Paraguay. In July, Bitcoin Magazine got an exclusive look at the bill through a conversation with Paraguayan Congressman Carlitos Rejala. The legislation alluded to increased regulatory certainty from regulators across the country regarding bitcoin mining and an overarching goal of providing investors with protections against companies offering bitcoin services.

“With this, we want to welcome Paraguay’s cryptocurrency innovation to the world,” Rejala told Bitcoin Magazine at the time. “This is the result of a very solid and arduous teamwork of many experts in the field, both local and foreign.”

However, it is not yet clear whether the long and complicated Paraguayan bill will welcome Bitcoin and cryptocurrency innovation.

“While El Salvador’s final bill was only a few pages of text easily representing the most favorable and accommodating Bitcoin legal language ever adopted, the first version of Paraguayan law set a different tone.” , Bitcoin Magazine reported in August, highlighting how Paraguay chose to stand up. stark contrast to the more favorable legislation of the Central American country.

The bill approved by the Paraguayan Senate stipulates that individuals or companies interested in mining bitcoins will have to apply for an authorization for the consumption of industrial energy. However, once approval is granted, the entity will have to go one step further and apply for a license to mine bitcoin.

Bitcoin miners could profit from “the thousands of megawatts that Paraguay currently has in surplus,” according to the bill, if they fall under the country’s regulations. The text noted that the industry would be regulated jointly by the Secretariat of Industry and Commerce of Paraguay, the National Securities Commission, the Anti-Money Laundering Office and the National Electricity Administration. .

“With respect to transactions with crypto assets, the National Securities Commission will establish registration requirements for agents involved in trading, remuneration, custody and intermediation in the securities market,” said Silva Facetti in another tweet.

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