Paraguay has just joined the list of countries with a cryptocurrency regulatory framework. The regulatory framework of crypto transactions has been made in different countries for the past year. Countries give out different policy structures and guidelines for crypto investors, buyers, and exchange platforms.
Paraguay Senate to Control BTC Trading and Mining
The senate members for Paraguay chambers have just signed a bill to regulate BTC. The chambers seem not to be bothered about Altcoins (other cryptocurrencies) as their main aim is Bitcoin. The announcement of the signed bill to law was made earlier after the proposed legislation was approved by 40 out of the 52 members.
The bill that contains the draft crypto framework was initially presented before the house late last year. The bill was approved. The house debated the legislation until last month when it was finally modified. The bill was signed, and the cryptocurrency space, especially BTC, will be under the monitoring of the Government.
The signed bill was announced by the country’s information, technology, and communication (ICT) Minister. The minister, Mr. Silver F. Fernando, was happy to make the announcement. He stated that the law protects cryptocurrency buyers and investors and lays out their rights and duties to the Government.
The Senate approved that the Ministry of Commerce will enforce the law, prosecution of offenders, and authority. Anybody/party, miners, traders, or exchange platform that violate the law will face the wrath of the commerce ministry. According to the minister, trading or mining of BTC under the coast of the country requires specific authorization.
All bodies and entities interested must pass through the Ministry of commerce for legal approval. Failure to get proper authorization will cause the entity to be declared illegal. Also, the law is believed to curb money laundering, financial theft, cryptocurrency/digital scams, rug pull, and frauds.
Crypto/BTC Miners Topmost Beneficiaries Of The New Law
Crypto miners in Paraguay are the top beneficiaries of the new bill approved by the senate. The Senate consented that all crypto miners, firms, and entities will be supplied excess energy by the NEA (National Electricity Administration). The Paraguay Security commission will, however, supervise all crypto transactions and dealings to ensure the protection of citizens.
There are two significant dams in Paraguay that supply over 80% of the nation’s energy, which will be given to crypto miners. Miners will be provided excess energy/electricity at a lower price from the dam and exempted from paying Value-Added-Tax (VAT). All crypto entities will be taxed and treated like those in the security trade; they will pay income tax without VAT by the Taxation ministry.
One of the beneficiaries of this new law is a bitcoin mining company located near the dams in Paraguay. The Canadian company, Bitfarms, is said to have a 10-Megawatt electricity plant on the country’s coast. With enough energy, no VAT mining companies are expected to double in Paraguay.