Members of the Chamber of Deputies of Paraguay's Congress, Carlitos Rejala and Silva Facetti, have created a bill to regulate Bitcoin and cryptocurrencies in the nation. The bill is to be proposed to the Chamber of Deputies today. Congressman Rejala provided the TheStreet Crypto the new bill over WhatsApp correspondence. The full translation can be read below.
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- The purpose of the new bill is to "regulate the activities of production and commercialization" of cryptocurrencies (Article 1).
- The bill seeks to establish an 'Application Authority' consisting of three entities that will control the public offering of digital assets, prevent money laundering and supervise the countries' electrical needs in relation to crypto mining (Article 4).
- Those who wish to mine cryptocurrency will require a Virtual Asset Mining License (Article 5a). Those who mine outside of the legal framework will be disciplined via sanctions (Article 5e).
- All mining operations will need to be approved and overseen by an authority (Article 8c).
- The bill will set up "monitoring and control mechanisms for transactions involving cryptocurrency virtual assets." Those who fail to comply with the transaction monitoring system will be punished (Article 7b).
- The bill will recognize virtual asset mining as a new "innovative and electro-intensive industry." (Article 9)
- Tokens give holders the right to profitability or "benefit from the investment project, which is called a utility token." In the case of a security token the holder reserves the right to "a share of the capital used for the development of the project." (Article 13 a and b)
- Trading entities (presumably exchanges) "must inform the acquirer of the trading conditions with Virtual Assets, expressly notifying that the virtual assets are not recognized as legal tender, therefore, they are not backed by the Central Bank of Paraguay." (Article 14)