Paraguay Passes Bill Regulating Crypto Mining, Trading: Here's What You Need To Know

The Paraguayan government has re-approved a cryptocurrency bill which will now regulate crypto mining and trading in the country. 

The bill was previously approved on December 21, 2021. However, the Chamber of Deputies modified it and later approved it in May 2022. 

According to the crypto bill, the law enforcement agency will be the Ministry of Industry and Commerce, penalizing anyone or any legal entity using cryptocurrency for mining or other services without authorization. 

Regarding the mining of crypto assets in the country, the National Electricity Administration will be in charge of enabling the energy supply. The Secretariat for the Prevention of Money or Asset Laundering will supervise the whole investment process for the crypto firms. 

Also Read: Paraguay Data Center Market is Expected to Reach $88.5 Million by 2027

The National Securities Commission will oversee the commercialization of the obtained assets.

According to the new law, individual and corporate miners must request industrial electricity consumption authorization and then apply for a license. 

The authorities will create a registry for any individual or legal entity aiming to provide crypto trading or custody services for third parties.

Canadian Bitcoin (CRYPTO: BTC) miner Bitfarms Ltd (NASDAQ: BITF) is a prominent mining player in Paraguay.

Photo: Created with an image from Nicolas Raymond on Flickr