Paraguay’s Chamber of Representatives has approved a crypto bill that seeks to bring more clarity to cryptocurrency mining.
Paraguay has been traditionally seen as a mining haven by cryptocurrency mining companies due to the cheap electricity costs the country features.
The bill, which was approved in December last year by the Senate, was approved with a voting record of 41 votes in favor and 11 votes against.
The new bill stipulates that cryptocurrency exchanges will now be regulated as entities, having the obligation of registering their operations as virtual asset service providers to SEPRELAD, the money laundering watchdog of the country.
P2P traders will also have to register their operations because the rule applies to any person or company that is going to trade, manage, broker, exchange, or store crypto assets for third parties. This also includes crypto custody companies.
Cryptocurrency mining will also benefit from this bill, as it would regulate matters related to the energy supply and the tariffs that the government will be able to collect, clarifying an activity that is still not regulated in the country.
The bill will now be passed again to the Senate of the country, which will have up to 90 days to discuss the contents and propose changes to the structure of the document.
Then, if approved, the bill will be ready for presidential sanction.
