The Paraguayan Senate has approved a bill that seeks to regulate cryptocurrencies and their operations in the country. The bill, which had already been submitted to the Vice Chancellor, was approved with several proposed changes, establishing clear definitions and tax exemptions for companies in the cryptocurrency and crypto mining sectors.
Paraguay’s cryptocurrency bill passed Senate debate
Latam countries are seeking to standardize and regulate cryptocurrencies to bring more clarity to investors dedicated to the region’s industry, and on July 14, the Paraguayan Senateapproved
The bill was introduced last year by Senator Fernando Silva Fasetti and others, but was amended by the Conference of Vice Chairs, which proposed several changes that Fasetti said would be considered an improvement. The bill established the country’s Ministry of Industry and Commerce as the agency responsible for regulating cryptocurrency-related services.
Similarly, the bill defines that crypto-mining companies must present their electricity consumption plans to the country’s electricity administration, and if they do not comply, the electricity administration can cut power to these companies. In addition, payment for power services would be made in advance.
In the area of taxes, cryptocurrency companies are exempt from paying VAT, but must pay income tax.
Lawmakers still uncertain about the bill
The cryptocurrency bill has been approved by the Senate and will now be in the hands of President Mario Abdo Benitez, who will have the choice to approve the bill or apply his veto to the document. Some senators, however, expressed discomfort with the law being approved in its current form and called for a presidential veto.
Fellow Senator Esperanza Martinez criticized the cryptocurrency bill concept, saying that cryptocurrency is not even an actual industry. Martinez further described the industry as “electricity-intensive and extractivist” and consumes a lot of resources for the few jobs it offers.
Another senator, Enrique Baquetta, echoed Martinez’s views and called for a presidential veto of the law. If vetoed, this cryptocurrency bill would not be the first of its kind in Latam. Panamanian President Laurentino Cortizo also partially vetoed the cryptocurrency law in June, concerned about money laundering issues related to crypto.
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