Paraguay Paves The Way For Crypto Regulation Despite Internal Opposition

Paraguay is seen by many as a possible hotspot for crypto adoption due to low electricity prices and relatively lenient taxation.

iexclusivenews reports that the government has taken advantage of this opportunity by introducing new regulations governing digital assets.

The Paraguayan Congress approved a measure on May 25 that governs cryptocurrency trading, mining, and custody by a vote of 40 to 12.

This online news outlet understands that the bill now needs to be adopted by the Senate before it can be delivered to President Mario Abdo Bentez.

If enacted, the measure would apply to anybody in Paraguay who is involved in cryptocurrency mining.

Commercialization, trading, transfer, manufacturing, custody, or administration, as well as associated tasks.

What You Need To Know 

iexclusivenews Nigeria reports that the proposal proposes financial and legal protections to enterprises and individuals. As well as spending and taxes constraints on electricity.

For example, a translation of article 11 of the bill states:

“Crypto mining is recognized as an industrial and innovative activity. This activity will be a beneficiary of all mechanisms and incentives foreseen in the national legislation ”

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The Paraguayan Central Bank and the budget commission have both stated their disdain of digital currencies, calling them a “high-risk project with little benefit to the state.”

This comment was backed by the customary fear that cryptocurrencies promote criminal activity and drive up electricity costs significantly.

Paraguay is one of several Latin American governments looking into digital asset legislation.

In June 2021, El Salvador became the first country to recognize Bitcoin (BTC) as legal money.

Brazil, Argentina, Uruguay, and Panama are among the countries that are now debating crypto policy.