The crypto regulation bill with some changes is approved by the Chamber of Deputies of Paraguay even after reservations from the central bank.
Members of the Senate first introduced this bill to regulate commercial activities related to digital assets in Paraguay, last July. The bill also mentions the licensing and regulation of crypto mining activities in the country.
Although the Senate approved the bill in December 2021, the Senate must review the bill after the latest modifications highlighted by the Chamber of Deputies. Only then will it be presented for presidential sanction.
The vote on the bill was held on May 25, where around 40 voted in favor of the bill while 12 voted against it. For further debate on the decision, the bill will pave the way back to the Senate.
The bill is not to legalize the bidding of cryptocurrencies in the country
Meanwhile, the BCP continues to emphasize the fact that the bill itself will not make cryptocurrencies legal tender in the country.
As mentioned in the bill, the objective of this law is to “regulate the activities of production and commercialization of virtual assets or crypto assets”. Thus guaranteeing legal, financial and fiscal security to the businesses acquired from its commercialization and production.
Lawmakers describe this recent breakthrough as a “huge leap” for cryptocurrencies in the country.
Meanwhile, the bill that proposes to build a legal framework for bitcoin mining is also approved by the second chamber of Congress. Carlitos Rejala, one of the supporters of the bill, mentions in a tweet, “One hundred percent hydroelectric renewable energy.”
The Central Bank of Paraguay points out the “disadvantages” of crypto regulation in the country
The Central Bank of Paraguay (BCP) has long criticized the crypto industry. The bank published its analysis and asked if the benefits of regulating cryptocurrencies are enough to balance the disadvantages it would bring to Paraguay.
By “disadvantages” is meant “loss of reputation and costs for the financial system, electricity consumption”. He also argues that digital assets do not function as money, but rather as high-risk investments.
BCP also refused to discuss cryptocurrency during its meeting in El Salvador last week, stating that it is not yet legal tender in the country.
This bill is significant in terms of it being able to provide further clarification on crypto regulation in the international market.