The Paraguayan Senate on Thursday re-approved a bill governing cryptocurrency mining and trade in the country
Unlike Russia, countries in Latin America are attempting to standardize and regulate cryptocurrency in order to provide greater clarity to investors interested in the industry. On July 14, the Paraguayan Senate approved a cryptocurrency bill that defines several rules that businesses and individuals must follow in order to use cryptocurrencies.
The bill was previously confirmed by the Senate in December, but it was later modified and approved by the Chamber of Deputies in May of this year. As a result, it was sent back to the upper house for approval. After being passed by both chambers, the bill must now be sent to the executive branch for approval or veto.
The new legislation also requires crypto exchanges to register as virtual asset service providers with Paraguay’s anti-money-laundering agency. Similarly, the bill states that crypto mining companies must submit a power consumption plan to the national power administration, which has the authority to cut off power to these companies if they do not comply. In addition, payment for power services will be made in advance.
In terms of taxation, cryptocurrency companies will be exempt from paying value-added taxes but must pay income taxes.
According to the main amendment, the primary law enforcement agency will be the Ministry of Industry and Commerce, which will penalize anyone or any legal entity using cryptocurrency for mining or other services without the required authorization.
Bitfarms (BITF), a Canadian bitcoin miner, is one of the major mining players in Paraguay, with a 10-megawatt facility in Villarica, located in the South Central region of the South American country.
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