Paraguayan Senate Approves Cryptocurrency Bill

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 deputy chamber, was approved with some changes suggested, establishing clear definitions and tax exemptions for companies in the cryptocurrency and crypto mining sectors.

Paraguayan Cryptocurrency Bill Passes Senate Discussion

Countries in Latam are seeking to standardize and regulate cryptocurrency to bring more clarity to investors dedicated to the industry in the area. On July 14, the Paraguayan senate greenlighted a cryptocurrency bill that defines several rules that companies and individuals will have to follow to operate with cryptocurrencies.

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. Also, the payment for the power services will be made in advance.

In the tax area, cryptocurrency companies will be exempted from paying value-added taxes but will have to pay income taxes.

Lawmakers Still Uneasy About the Bill

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. However, some lawmakers expressed their discomfort about the approval of the law in its current form, with some calling for a presidential veto.

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. The president of Panama, Laurentino Cortizo, also vetoed partially a cryptocurrency law due to worries about money laundering issues related to crypto in June.