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On Thursday, Paraguay’s Senate passed a bill to regulate crypto trading and mining activities in the country.
Although the Senate had already approved the bill in December, it needed some polishing and had passed the Chamber of Deputies this May with new changes. As a result, the bill got sent back to the Senate for another vote.
Following the approval of both chambers, the law will now be submitted to the executive branch, to either put the law into effect or dismiss it by issuing a veto.
The law stipulates that the primary law enforcement authority overseeing the crypto industry will be the Ministry of Industry and Commerce, which has the power to penalize individuals or business who engage in crypto mining or other services without the regulatory green light.
In addition, the National Electricity Administration will oversee the allocation of the energy supply, while the Secretariat for the Prevention of Money or Asset Laundering will monitor the complete investment process done by crypto companies. The National Securities Commission will take care of the commercialization of the assets.
Should the law come into effect, individual or legal entities looking to provide crypto trading or custody services, are required to register. With regards to mining activities, authorization for industrial electricity consumption will need to be requested followed by a license.
Paraguay is already home to Canadian Bitcoin miner Bitfarms (BITF) which is one of the larger mining operators in South America, running a 10 megawatt facility in the southern city of Villarica.