Paraguay passes bill seeking to regulate cryptocurrencies

South American and Central American countries have recorded a growth in crypto adoption levels. Paraguay has become the next country in the region to support a bill fostering the use of digital assets.

Crypto activities in Paraguay have grown significantly over the past year. The country now ranks as one of the most sought-after locations for cryptocurrency mining.

Paraguay passes crypto bill

Legislatures in Paraguay held a meeting where they voted on a crypto-assets bill. The bill in question was voted for by deputies, where 40 of the deputies supported the regulation of digital assets, while 12 voted against the bill.

The law that was voted upon addressed regulators in the country and how they would be bestowed with authority required to monitor the firms offering crypto services. Under the law, regulators would be tasked with giving licenses, overseeing the act6ivities of these firms and ensuring they are complying with the set rules.

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One of the main reasons Paraguay is starting to focus on crypto regulations is to ensure that it remains a hub for foreign miners, given the friendly energy rates. Paraguay has had the lowest electricity charges in the region for the past five years.

Under the proposed bill, both new and industrial miners that want to operate from Paraguay will need permits and approvals before commencing their operations. The bill also addresses people that want to facilitate crypto services.

The tabling of this bill happened when Paraguay is witnessing a notable increase in digital asset activities. Over the past two years, technology companies in the country have turned towards digital assets, contributing to a growing crypto user base.

Growing crypto adoption

The level of cryptocurrency adoption globally has increased significantly. Despite the market’s current performance, several countries have continued to show interest in adopting cryptocurrencies.

Recently, the Central African Republic made headlines for being the second country in the world to adopt Bitcoin as legal tender. The country’s officials said that through Bitcoin, they had a chance of aiding the economy in its recovery.

Russia is also considering the use of cryptocurrencies for international payments. International trade has been affected following the heavy Western sanctions imposed on the country. A recent report by Reuters noted that government officials were mulling over legalizing crypto to facilitate cross-border payments.

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