Paraguay to regulate cryptocurrencies to become a global hub for crypto mining and innovation.
The Senate of Paraguay, the upper house of the country's Congress, has approved the cryptocurrency bill which was presented by a group of Paraguayan legislators, including Fernando Silva Facetti and Carlos Rejala, in July of last year.
Titled “Law that regulates the mining, commercialization, intermediation, exchange, transfer, custody and administration of cryptoassets or instruments that allow control over cryptoassets,” Paraguay’s crypto bill seeks to harnessing the country's energy surplus to turn it into a major cryptocurrency mining hub.
The bill in question had been approved by the Paraguayan Senate in December of last year.
However, after making some modifications to the original document, which were approved in the Paraguayan Chamber of Deputies in May, members of the Senate held a new vote.
Despite the rejection expressed by some legislators, such as senators Esperanza Martínez and Enrique Bacchetta, critics of cryptocurrencies, the regulatory proposal has advanced with the majority support.
Now, its final approval has passed to the Executive Branch, led by Paraguayan President Mario Abdo Benítez, who will be able to enact or veto this bill in the coming weeks.
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The amendments approved by the Senate in the Crypto Law
Following an intense debate, Paraguayan senators have given the green light to the crypto bill to move forward with some modifications, including the designation of the country's Ministry of Industry and Commerce (MIC) as the main implementing authority for the proposed law.
In addition, the National Administration of Paraguay (ANDE) will be the entity responsible for enabling and supplying energy and supervising its use.
Other government organizations, such as the Secretariat for the Prevention of Money or Asset Laundering (SEPRELAD) and the National Securities Commission of Paraguay, also have authority in the cryptocurrency industry, to oversee the investment and marketing processes of crypto assets in the country, as established by the aforementioned bill.
Paraguay wants to lead crypto mining with renewable energy
Cryptocurrency mining has become one of the main objectives of the country's regulators, who want to make Paraguay a leading nation in the cryptocurrency industry.
At the time of presenting the bill, Deputy Carlos Rejala, one of its authors and main promoter, highlighted that The country has the necessary resources to position itself as a leader in crypto mining.
Specifically, Rejala pointed out the energy potential of Paraguay, which has one of the lowest electricity rates in Latin America and one of the largest energy productions from renewable sources, such as from the giant hydroelectric plants Itapiú, Yacyretá and Acaray.
“This will allow us to safeguard and optimize our renewable energy,” said the Paraguayan deputy, referring to crypto mining as a key element to guarantee Paraguay’s energy sovereignty.
Likewise, Congressman Fernando Silva Facetti, also author of the country's crypto law proposal, commented that the approval of said regulatory proposal establishes the bases to guarantee access to energy and allows the country to use its energy surplus prudently, to sustain one of the fastest growing industries in recent years.
Paraguay's proposed crypto law therefore seeks to formalize the cryptocurrency industry, with a focus on crypto mining.
Although this project does not mention the possibility of recognizing cryptocurrencies such as Bitcoin as legal tender in the country, if approved by President Mario Abdo Benítez, Paraguay will be one of the most attractive destinations for crypto mining companies and for investors and participants in this growing industry.
Villarica, a growing crypto mining power
Currently, several localities in Paraguay, such as Villarrica, are focusing on developing cryptocurrency mining at an industrial level as an activity that allows taking advantage of the country's enormous energy surplus, in addition to promoting economic development and innovation.
According to a report by the BBC in the middle of this month, A crypto mining farm located in Villarrica operates more than 30.000 computers and equipment dedicated to mining Bitcoin and other crypto assets.
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