Paraguay Crypto Bill Likely to Become Law Despite Market Conditions

8:20 am, Mon, 18 July 22

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Following in the footsteps of El Salvador and the Central African Republic, the next country to endorse crypto is Paraguay.

The South American country is planning to keep up with the latest Web3.0 technologies and step into the crypto space by forming a crypto and tax regulatory framework. The lawmakers in the country have taken a year to thoroughly discuss the possibilities and all relevant aspects of the framework, which also includes considerations for traders and businesses.

While this is quite an exciting development, many are concerned if Paraguay will go through with it, considering the cryptocurrency future is unpredictable. Even though the crypto market has been doing well for the last 24 hours (at the time of writing) many crypto enthusiasts are still skeptical.

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Details of Crypto Bill in Paraguay

On July 14, 2021, a crypto bill was introduced by Senator Fernando Silva Facetti. The bill was passed in Congress this May and eventually reached the Senate.

The bill insisted on forming the Ministry of Industry and Commerce (MIC) for the supervision of crypto service providers.

Congress highlighted that the bill is specifically related to:

  • Administration of crypto assets or instruments
  • Commercialization
  • Crypto mining
  • Custody
  • Exchange
  • Intermediation
  • Transfer

The proposed bill facilitated the establishment of a regulatory and tax framework for businesses operating in cryptocurrencies and crypto mining sectors.

According to reports, this bill is now one step away from being approved as law by the President of Paraguay.

The lawmakers in the country convened for a year, during which some modifications were made to the bill. While the original idea went through some improvements, some officials are concerned about energy consumption and actual job opportunities for countrymen.

As per reports, the bill encourages crypto miners to collaborate with local power suppliers. In this case, the miners will be reporting their energy consumption and can even face discontinuation of operations if the consumption exceeds the planned limit.

It has also been reported that businesses operating in crypto will not be required to pay Value Added Tax (VAT) but will be included in the income tax regime.

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