April 1, 2023

The Senate of Paraguay approved a bill to regulate cryptocurrencies

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The Senate of Paraguay approved a bill to regulate cryptocurrencies

The Senate of Paraguay adopted a document establishing a tax and regulatory framework for miners and companies operating in the crypto-currency field.

Paraguayan Congressman Carlos Rejala and Senator Fernando Silva Facetti, appealed
to the parliament of the country with the initiative of legislative regulation of mining and trading in crypto-currencies.

Last week, all preliminary approvals were completed and amendments were made. As a result, the Senate of Paraguay approved the normative legal act and submitted the bill for signature to the President of the country.

The new law gives the functions of control overcrypto industry and supervision of virtual service providers Ministry of Industry and Trade of Paraguay. The agency will have the right to punish individuals or legal entities engaged in mining or providing cryptocurrency services without proper permission.

Dedicated anti-money laundering agencywill control the entire investment process carried out by cryptocurrency companies, and the National Securities Commission will be responsible for the commercialization of the assets received. Companies associated with investments in cryptocurrency assets will be eligible to operate in the securities system and will be exempt from paying value added taxes.

The law obliges private miners and corporatemining companies to request permission for industrial electricity consumption before applying for a license. The National Energy Authority (ANDE) will monitor the amount of electricity consumed by miners. At the same time, companies and citizens mining cryptocurrency will be required to interact with power engineers and submit an energy consumption plan to ANDE, in order to avoid the threat of disruptions in the supply of energy to social and industrial facilities.

In June, Panama's President Laurentino Cortizo vetoed a partial veto on the cryptocurrency law over concerns about money laundering issues.