Paraguay passes a crypto bill to regulate crypto

Latin American countries are taking cryptocurrency more seriously and are working to ratify legal and regulatory frameworks.

Paraguay passes crypto bill to regulate crypto

Paraguay has long been regarded as a mining sanctuary for cryptocurrency mining operations due to its low electricity costs and "crypto-friendly" environment.

The Chamber of Deputies of Paraguay endorsed a measure to regulate cryptocurrencies on Thursday, despite opposition from the country's central bank.

Furthermore, Deputies voted 40 to 12 in favor of passing the modified legislative draft during a special session.

Despite the Senate's original adoption of the law in December of last year, the Chamber of Deputies' recent amendments will need the Senate to revisit the document before it can be submitted to the president.

The measure, which was first introduced in the Paraguayan Senate in July of last year, attempts to regulate digital asset commercial activities.

This entails approving and overseeing bitcoin mining operations in the country. Cryptocurrencies are not made legal tender under the proposed legislation.

Furthermore, because of the country's low electricity costs, which are under five cents per kilowatt-hour, the lowest in Latin America, the goal of this move is to make Paraguay an international hub for miners.

The new regulation requires bitcoin exchanges to register with Paraguay's anti-money laundering agency as virtual asset service providers.

The measure's purpose is to "regulate the production activities and commercialization of virtual or crypto assets in order to offer legal, financial, and fiscal security to the enterprises that profit from their production and commercialization," according to the bill.