Cryptocurrency Regulation 2023: The cryptocurrency union will present a new bill on the regulation of virtual assets.
The Paraguayan Chamber of Fintech announced that it will present to the National Congress, at the end of March, a legislative proposal for the use of crypto assets within the national territory, seeking to reach an agreement with the Government.
After the Chamber of Deputies accepted, in December last year, the Executive Power’s veto of the bill that sought to regulate crypto assets in Paraguay, the Paraguayan Chamber of Fintech announced that at the end of the third month of the year, they will present to the Lower House a new legislative proposal with modifications.
Fernando Arriola, leader of the Chamber’s Blockchain vertical, stated that this new project presents better enforcement practices in regard to regulations by the corresponding entities.
“What we are going to present will resemble the project previously presented in regulatory aspects and in international best practices for supervision and regulation and naming of virtual assets,” said Arriola.
At this point, it is important to highlight that the Central Bank of Paraguay (BCP) had indicated, in a report, that crypto assets do not fulfill basic functions of money and constitute high-risk investments.
“The intention to regulate the industry and commercialization of virtual assets. As intended in this bill, it could generate a false sense of security regarding the possession of this type of asset”, reads part of the document exposed by the parent bank on the now vetoed bill.
Continuing with the new legislative proposal, Arriola commented that for this project they are going to request to include the instruction of an interdisciplinary commission of virtual assets, where all the entities that regulate are, as is the case of the Consumer Defense Secretariat and the User (Sedeco).
Likewise, he maintained that they will request the creation of a body to supervise and control compliance with the law, since it is a very innovative activity, which will require the support of the sector to the State in terms of knowledge.
“We want to promote that the best international practices are followed, that it depends on multilateral entities and follow the global trend,” he said.
Electric Power Regulations
Another of the major questions that were raised with the previous cryptocurrency bill revolved mainly in terms of the fee that this activity had to pay to the National Electricity Administration (Ande) since the union requested that it pay the industry around 15%, while from the Central Administration, they assured that for these businesses they would be 15% on the value of the industrial rate.
On this point, the head of the Paraguayan Chamber of Fintech pointed out that they requested the support of Ande to precisely reinforce their resolutions in terms of the law.
“It is very important that they have representation and legal powers within this project, since this mining activity, which is electro-intensive, requires that we follow due process so as not to harm the Paraguayan people,” Arriola commented.
On the other hand, he argued that Paraguay, to be included in this new business modality and to improve the country’s financial health, must match its regulatory framework, taking the base of countries that spearhead this kind of technology.
“We want to create a regulatory framework that is positive for blockchain technology, to promote the country’s technological development, so that this bill does not stop innovation, but rather promotes it,” he said.
Finally, Arriola pointed out that one of the drawbacks that arise with this business is the informality of the sector in Paraguay, which could be validated and compared with what is happening internationally.
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