The proposed initiative is the country’s first serious effort to impose regulations on the fast-rising bitcoin and tap its benefits.
But even with this big initiative, the government has reiterated that the proposed law would not follow El Salvador’s path of turning bitcoin into a legal tender.
Rejala and Facetti said that Paraguay’s Bitcoin Law aims to create a legal framework for the cryptocurrency market and crypto mining to better regulate these fast-growing trends.
Rajala said in a tweet that aside from regulating cryptocurrencies, the law also aims to make Paraguay’s economy more attractive for foreign investors.
The bill’s final version, which has four chapters and 22 articles, is titled “Law that regulates the industry and commercialization of virtual assets ー cryptocurrencies.”
According to the final version, the Ministry of Industry and Commerce will handle the registration, supervision, control, and production of cryptocurrencies.
National Securities Commission, the Secretariat for the Prevention of Money or Property Laundering, and the National Electricity Administration will also take part in regulating cryptocurrency in the country.
The proposed law would also require crypto traders and miners to acquire licenses from the government before operating in the country.
As the final draft finally lands on the parliament, the chamber of deputies and senators will then debate about the different areas of the proposed law.
The possibility of modification, approval, or rejection of the bill will depend on the outcome of the debate. Also, officials didn’t give any specific timeline on how long the discussion would take.
Image courtesy of Cointelegraph News/YouTube
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