Paraguay paves the way for cryptocurrency regulation despite internal opposition

Paraguay is seen by many as a potential hotspot for cryptocurrency adoption due to low electricity costs and relatively soft taxes. The government has recognized this opportunity by pushing for new legislation around digital assets.

On May 25, a bill to regulate cryptocurrency trading, mining and custody was passed officially recognized The Paraguayan Congress passed by 40 votes to 12. The bill must now be approved by the Senate before it finally reaches President Mario Abdou Benitez.

If approved, the bill would apply to any person or organization in Paraguay involved in the mining, commercialization, trading, transfer, production, custody or management and related functions of cryptocurrencies. The legislation provides financial and legal safeguards to businesses and individuals, while also imposing restrictions on electricity spending and taxation issues.

For example, a translation of Article 11 of the Act states: “Crypto mining is considered an industrial and innovative activity. This activity will benefit from all mechanisms and incentives foreseen in national legislation”

However, regulations are not without resistance.Both the Central Bank of Paraguay and the Budget Committee have Express They disapprove of digital currencies, calling the movement a “high-risk project that does no good for the country.”The statement was also accompanied by the usual suspicion that cryptocurrencies facilitate criminal enterprises, and to a large extent increase electricity bill.

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Paraguay is one of them Latin American countries Actively explore digital asset regulation.salvador starts Legalization Trend In June 2021, by recognizing Bitcoin (bitcoin) as legal tender. Other countries undergoing crypto regulatory discussions include Brazil, Argentina, Uruguay and Panama.