Most Awaited Bitcoin Mining Bill Sanction By Paraguay Chamber

Paraguayan Senator Fernando Silva Facetti Passes Crypto Bill
  • Under the bill cryptocurrency firms will not be required to pay VAT.
  • The power consumption for mining activity will be done under ANDE.

On July 14, the South American country Paraguayan senate sanctioned a complete bill to restrict cryptocurrencies and enable bitcoin miners to utilize extra electricity produced in the country at the lowest cost which cannot exceed 15% above the industrial rate.

According to the main modification proposed by the Chamber of Deputies and now approved by the Senate. The Ministry of Industry and Commerce will be in charge of regulating laws, and it will sanction entities that mine cryptocurrencies or offer cryptocurrency-related services. 

Under National Electricity Administration (ANDE) the regulations allow Paraguay to use its excess power prudently, at affordable pricing for the investor and the State. Also, the enacted regulations set obligations, rights, and protections for investors, consumers, and the State. 

Already the crypto bill had been adopted by the Paraguayan government in December, but it was modified and approved by the Chamber of Deputies in May, so it moved back to the upper chamber.

Senator Fernando Silva Facetti also highlighted how the National Security and Exchange Commission (SEC) will be responsible for implementing procedures for monitoring and regulating cryptocurrency trade, custody, and issuance of cryptocurrencies.

According to the report, the legislation states that firms in the cryptocurrency industry operating in Paraguay will be excluded from paying the Value Added Tax (VAT), but they will be liable to the income tax regime.

Many countries like El Salvador and the Central African Republic adopted cryptocurrency as a legal tender. Following them, Paraguay’s adoption will be the mining hub for Latin America because of the country’s low electricity costs, which are roughly five cents per kilowatt-hour.

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A journalism graduate who is passionate about writing loves to dance and travel currently starts exploring blockchain technology.