Paraguay moves a step closer to regulating digital currency

The Paraguayan Senate adopted a cryptocurrency measure submitted in July on Dec. 17, 2021. The regulations, which define a number of crucial words, including virtual assets and need mining permits for cryptocurrencies, will now be referred to the Deputy Chamber for additional consideration.

The bill’s proponent, Senator Fernando Silva Facetti, stated that it was passed in the Paraguayan Senate following a difficult discussion. According to the senator, the bill also intends to promote the expansion of crypto mining by utilizing the country’s excess power.

Virtual assets, tokens, cryptocurrency mining, and VASPs are all defined in the legislation’s body (virtual asset service providers). It also empowers the Ministry of Industry and Commerce to request help from government organizations outside of its jurisdiction in order to put the law into effect.

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The bill expressly declares cryptocurrency mining to be a legitimate activity, stating that:

“Virtual asset mining is a cutting-edge, digital enterprise. All incentive mechanisms given in national legislation would help this business.”

According to reports, Paraguay generates more energy than it uses. As a result, numerous companies are considering launching cryptocurrency mining facilities in the area in order to take advantage of the possible excess.

Congressman Carlos Rejala and Senator Fernando Silva Facetti of Paraguay introduced a Bitcoin (BTC) bill in July, expressing the politicians’ commitment to developing a comprehensive digital asset framework for their country. The bill was approved by the country’s Congress and will be debated in the Chamber of Deputies in 2022.

South America has emerged as a plausible hotspot for cryptocurrency adoption, owing to local economic and budgetary issues, particularly in Argentina, Venezuela, and Mexico. Argentinians and Venezuelans, for example, have resorted 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 opposite approach, with the president urging people to use BTC.