The final version barely mentions the tax burden, which was highlighted in previous drafts of the law.

Congressman Carlos Rejala and Senator Fernando Silva Facetti presented their final version of the long-announced and anticipated crypto regulation initiative to the National Congress of Paraguay.

In line with the previous statement of the national legislator, the proposal does not seek to gain another legal tender status for Bitcoin (BTC), but provides a legal framework for the cryptocurrency market and mining in the country.

What is proposed

Carlos Rajala on the subject in a tweet:

“As we had already announced, yesterday we presented the project “Bitcoin Law”. This bill provides a clear legal framework for the cryptocurrency generation industry, which attracts foreign investment to Paraguay.“

Several bills recently circulated in publications, but the final version, presented before the National Congress of the Republic, consists of four chapters and 22 articles, according to the report of “CryptoNoticias”.

According to the report, the proposed bill, entitled “Law regulating the Industry and Commercialization of Virtual Assets – Cryptocurrencies,” would allow Paraguay to regulate the crypto market and mining from four state institutions.

The bill proposes that the country’s Ministry of Industry and Commerce coordinate the authorization, registration, monitoring and control of the production and commercialization of cryptocurrencies. That would further divide these regulatory responsibilities among three agencies: the National Securities Commission, the Money or Property Laundering Prevention Secretariat, and the National Electricity Administration.

tax burden

The proposed bill, which aims to regulate the crypto market by establishing “legal, financial and tax security rules,” would include applying for and issuing licenses to mining companies and crypto traders, creating a register of crypto exchanges and service providers, and creating an energy consumption plan to supply the “innovative industry.”

The tax burden, which has always been highlighted in previous drafts of the bill, is hardly mentioned in the final version, as CryptoNoticias reports, since both companies and individuals who carry out activities outside the regulations could be sanctioned with administrative or even criminal measures.

Now the regulatory initiative is debated in Parliament, as the Chamber of Deputies and Senators decide whether to modify the proposal, approve it in the form presented, or reject it in a vote.

How long it will take Paraguay’s lawmakers to make a decision is not known – but two things are certain at this stage.

First, the country is interested in using the surplus energy from the Itaipú and Yaciretá hydropower plants. And second: the legal framework for crypto will come.

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Text credit: Cryptoslate

Last updated on July 16, 2021

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