A bill to regulate cryptocurrency and its operations in Paraguay has been approved by the Senate. With some modifications, the bill that had been already submitted to the deputy chamber was approved. It establishes clear definitions of crypto and crypto mining companies and exempts them from tax.
Paraguayan Cryptocurrency Bill Passes Senate Discussion
Latam’s countries are trying to standardize and regulate cryptocurrency, in an effort to make it easier for investors. A cryptocurrency bill was approved by the Paraguayan senator on July 14. It outlines several rules for individuals and businesses who want to trade with crypto.
The bill, which was introduced by Senator Fernando Silva Facetti and others last year, was amended by the deputy chamber, which proposed some changes considered an improvement per Facetti’s statements. The bill established the Ministry of Industry and Commerce of the country as the institution with the task of regulating cryptocurrency-related services.
In the same way, the bill defines that crypto mining companies will have to present a power consumption plan to the national power administration, which will be able to cut the power to these companies if they don’t follow it. The payment will also be done in advance for power services.
The tax law will exempt cryptocurrency businesses from the payment of value-added taxes, however they must still pay income taxes.
The Bill Still Affects Lawmakers
The cryptocurrency bill was approved by the Senate, and it will now rest in the hands of Mario Abdo Benítez, the president of the country, who will have the choice of sanctioning it or applying a veto to the document. Some legislators expressed dismay at the current law’s approval. Others called for a presidential vote.
Esperanza Martínez, another senator, criticized the cryptocurrency bill initiative, stating that cryptocurrency was not even a real industry. Furthermore, Martinez stated that the industry was “electro-intensive and extractivist,” explaining it consumed many resources for the few job positions it offered.
Enrique Bacchetta, another senator, also supported Martinez’s views, asking for a presidential veto on the law. If vetoed, This cryptocurrency bill won’t be the first one to experience this in Latam. Laurentino Cortizo the president of Panama also vetoed a portion of a cryptocurrency bill due to concerns about money laundering related to crypto.
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