By Alicia Maher
This year, discussions regarding the crypto market and its regulation have been a hot debate among various nations worldwide. The primary goal of the crypto market was for it to be governed autonomously. However, regulators have had to promulgate crypto regulations following the rising popularity of the crypto sector and some unwholesome practices by crypto community members. Hence, it is no wonder that Paraguay is also making moves to regulate its crypto industry.
Further Discussions On The Policy Next Year
Most of Paraguay’s local media revealed that the senate had approved the new crypto policy. But a statement credited to the bill’s sponsor states that the country’s chamber of deputies will also meet to review the policy before June 2022. Vocal lawmaker, Carlitos Rejala, stated in a recent interview with a local media outlet that Paraguay will not approve BTC for payment settlement purposes.
He also disclosed that this newly passed bill contains regulations for crypto mining firms. He further added that some of the bill’s provisions guarantee customer protection and limit their risk exposure as they trade the digital asset market. Some parts of the bill emphasize the need for collaboration between all regulatory bodies (such as including the department of ministry and commerce) to ensure a smooth implementation of the crypto guidelines.
Optimizing Under-Or-Unutilized Energy
While a part of the bill states that all VASPs need to keep a database of its customer, it didn’t specify whether this was only applicable to crypto exchanges. The bill highlights that the country’s produced energy is grossly under-utilized. Hence, it can enable the crypto mining sector to utilize this unused energy.
However, the various proposals in this bill will still be subject to discussion of the chamber of deputies in 2022. During the interview, Rejala claimed that Paraguay’s crypto miners enjoy the best energy rates globally, which is why most of them are attracted to the South American nation.
The Crypto Market Requires Institutional Finance’s Long-Term Support – Oddup CEO
James Giancotti, crypto analyst and Oddup CEO, has opined that the crypto industry needs support from the traditional financial system before it can be considered a viable investment option. He made his views known in a recent interview with a popular finance podcast. Giancotti claimed that crypto’s huge volatility is proof of its misnomer as finance’s “wild west.”
He stated that “unless there is a consensus that the market is stable and transparent, it will continue to retain that misnomer.” Giancotti’s views further add importance to SEC boss Gary Gensler’s claims that the current structure of the crypto market exposes investors to many risks.
During last month’s finance market summit organized by Yahoo! Inc, Gensler stated that “crypto investors need to be protected the same way investors in the stock and bond market are protected.” The crypto analyst concluded that the first step to attracting traditional investment managers is for members of the crypto community to recognize a need for these traditional investment managers.