Mining is considered a digital, innovative and “electro intensive” industry.
Those who operate without a license will be sanctioned with administrative and criminal measures.
Paraguay will regulate all activities related to bitcoin (BTC) or digital mining and will do so from four state institutions. This is clear from the recently presented legislative proposal called “Law that regulates the industry and commercialization of virtual assets and cryptoactives”, to which CriptoNoticias had access today, Wednesday, July 14.
The initiative, prepared by Congressman Carlos Rejala and Senator Fernando Silva Facetti, was presented at a private act and then before the National Congress of the Republic. The text indicates that the Ministry of Industry and Commerce will coordinate the authorization, registration, supervision and control of everything concerning Bitcoin.
This work of the Ministry will be delegated to three other agencies, which are: the National Securities Commission, the Secretariat for the Prevention of Money or Property Laundering (Seprelad) and the National Electricity Administration. The latter will have greater influence in the field of cryptocurrency mining.
Paraguayan congressmen propose that Bitcoin mining be considered as an innovative activity. Source: Courtesy.
“We believe that it is the best for our country and a really impressive model to replicate in other countries. There are many people involved to remove this, which is incredible, “Rejala told CriptoNoticias after the presentation of the project. The proposal does not speak of converting BTC as legal tender, as this newspaper advanced in an article published on July 12.
Licenses for all activities with bitcoin
Paraguayan regulation includes the application and issuance of licenses for mining companies, cryptocurrency traders whom it calls “intervening agents”, create a registry of exchanges and service providers for digital assets and establish an energy consumption plan to supply the nascent industry. The sector is recognized by legislators as an “innovative industry”.
Those companies or individuals that carry out activities outside the regulations could be sanctioned with administrative or even criminal measures, that is, offenders could go to jail. In addition, those who come to law, but later comment on tax or regulatory violations, could lose their licenses and receive fines.
In general, the bill consists of four chapters and 22 articles. A preliminary draft to which this newspaper obtained access consisted of seven chapters and 27 articles. It should also be mentioned that the tax burden of the activity, which was highlighted in a first draft, in the final version is barely mentioned.
Now the initiative will go to debate in the national congress. In parliament, the chambers of deputies and senators will set their points of view to define whether the proposal is modified, approved as presented or rejected in a vote by legislators. How long the MPs’ considerations might take is unknown.