Paraguay unveils new cryptocurrency law

Details have emerged of the final draft of Paraguay's much-anticipated crypto legislation as it is presented to the National Congress

After a month of anticipation, the finalised details of Paraguay’s new crypto legislation have been revealed as the country moves to become a key player in Latin America’s unfolding crypto race.

The finalised version of the proposed Bitcoin bill has been presented to the National Congress of Paraguay by the progressive Senator Fernando Silva Facetti and Congressman Carlos Rejala.

However, it seems that a potential legalisation of Bitcoin (BTC) as an official tender for use across Paraguay is off the cards.

The proposed legislation aims to create an attractive regulatory environment within the country through the establishment of a straightforward licencing regime that would enable the crypto industry to easily open operations.

This is part of a wider strategy attempting to draw in high-tech businesses that can help drive innovation within the Paraguayan economy.

The proposals suggest the country’s Ministry of Industry and Commerce should be the central body responsible for administering this licencing regime as it has the ministerial capacity and infrastructure to handle registrations, supervision, and commercial controls on cryptocurrencies.

In addition, the proposals include a mechanism for regulatory input from the National Securities Commission (although the bill avoids classifying cryptos as securities products), the Secretariat for the Prevention of Money Laundering, and the National Electricity Administration.

Crypto mining operations, exchanges, cryptocurrency projects, traders, and other businesses such as digital-asset custodial services will all be eligible to apply under the new licencing regime.

READ MORE: Latin America’s emerging crypto race

The politicians pushing the bill have also reached out to the National Electricity Administration in order to create a pre-emptive energy consumption plan, which will ensure supply meets demand as well as work on carbon footprint reduction through the use of surplus power produced by the Yaciretá and Itaipú hydroelectric power plants.

Curiously, any discussion of tax has been omitted from the finalised bill, marking a change from previous drafts. It seems that tax will be conducted at an individual level, with the Paraguayan government seeking to prosecute those operating outside of the licencing regime.

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