Despite the central bank and budget commission’s rejection of the project, the Paraguayan Congress has approved a new bill for crypto regulation.

Due to low electricity cost and relatively low taxation, a lot of people has seen the country as a prospective location for cryptocurrency adoption. The federal government has acknowledged this chance by pushing forward new legislation around digital assets.

The bill regulating cryptocurrency trading, mining, and custody was approved on May 25th by the Paraguayan Congress in a vote of 40 to 12. The bill must now be validated by the Senate before it can get to the president Mario Abdo Benítez.

If validated, the bill would apply to any individual or organization in Paraguay associated with the mining, commercialization, trading, transfer, production, custody, or administration of cryptocurrencies and related functions.

The regulations did come with some resistance though as both the Paraguayan Central Bank and budget commission have expressed their disapproval of digital currencies. Addressing it as a “high-risk project with no benefit for the country.”

Featured image source: iexclusive News.