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The crypto regulation bill with some changes is passed by Paraguay’s Chamber of Deputies even after the central bank’s reservations.
Members of the Senate first introduced this bill for regulating commercial activities concerned with digital assets in Paraguay, last July. The bill also mentions the licensing and regulation of crypto mining activities in the country.
Even though the senate gave approval to the Bill in December 2021. The Senate will need to revisit the Bill after the latest modifications highlighted by the Chamber of Deputies. Then only it will be presented for presidential assent.
The voting on the bill was conducted on May 25, where around 40 were in support of the bill while 12 voted against it. For further debate on the decision, the bill will pave its way back to the senate.
The Bill Is Not For Making Crypto Tender Legal In Country
Meanwhile, the BCP continues to emphasize on the fact that the bill itself will not be making crypto a legal tender in the country.
As mentioned in the bill, the aim of this law is “to regulate the production activities and commercialization of virtual or crypto assets.” Hence, guaranteeing legal, financial, and fiscal security to the businesses acquired from their commercialization and production.
Lawmakers describe this recent advancement as a “big leap” for crypto 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 bill’s supporters, mentions in a tweet, “One-hundred percent hydroelectric renewable power.”
Paraguay’s Central Bank Points Out “Disadvantages” Of Crypto Regulation In Country
Paraguay’s Central Bank (BCP) has criticized the crypto industry for a long time now. The bank published its analysis, asking whether the benefits of regulating crypto are enough to balance the disadvantages it would bring to Paraguay.
By “disadvantages,” it means “loss of reputation and costs for the financial system, electricity consumption.” It also argues that digital assets don’t operate as money, but as high-risk investments.
BCP also refused to talk about crypto during its meeting in El Salvador last week, stating that it’s not yet a legal tender in the country.
This bill is significant in terms that it can provide further clarification on the crypto regulation in the international market.
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Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
