A Paraguayan bill seeking to regulate the trading and mining of Bitcoin and cryptocurrencies in the country passed the Senate on Thursday. Senator Fernando Silva Facetti, a co-author of the bill, said on Twitter that the legislation now heads to Paraguay’s Chamber of Deputies, where it will be debated in 2022.
The bill does not make bitcoin a legal tender in Paraguay. In July, Bitcoin Magazine obtained an exclusive look into the draft bill through a conversation with Paraguayan Congressman Carlitos Rejala. The legislation hinted at increased regulatory security from the country’s regulators regarding bitcoin mining and an overarching goal to offer investor protections from businesses offering bitcoin services.
“With this we want to welcome the innovation of cryptocurrencies in Paraguay to the world,” Rejala told Bitcoin Magazine at the time. “This is the result of a very strong and arduous teamwork of many experts in the field, both local and foreign.”
However, it isn’t clear yet whether the lengthy and complicated Paraguayan bill will welcome Bitcoin and cryptocurrency innovation.
“While El Salvador’s final bill was just a few pages of text representing easily the most favorable, accommodating Bitcoin legalese ever passed, the early draft of Paraguay’s legislation set a different tone,” Bitcoin Magazine reported in August, highlighting how Paraguay chose to stand in stark contrast to the Central American country’s friendlier legislation.
The bill approved by the Paraguayan Senate states that individuals or companies interested in bitcoin mining will have to request authorization for industrial energy consumption. However, after the approval is granted, the entity would still need to go further and apply for a license to mine bitcoin.
According to the bill, bitcoin miners could enjoy “thousands of megawatts that Paraguay currently has as surplus” if it comes under the country’s regulations. The text noted that the industry would be jointly regulated by Paraguay’s Industry and Commerce Secretariat, National Securities Commission, Anti-Money Laundering Office, and National Electricity Administration.
“Regarding transactions with crypto assets, the National Securities Commission will establish the registration requirements for intervening agents for negotiation, compensation, custody, and intermediation in the securities market,” Silva Facetti said in another tweet.