A new bitcoin bill was proposed last week in Paraguay that will require cryptocurrencies to be registered with the country’s Undersecretariat of State Taxation.
There were high hopes when Rejala first announced the bill in the wake of El Salvador’s decision to make Bitcoin legal tender, but the bill is a lot more prosaic.
Congressman Carlos Rejala and Senator Fernando Silva Facetti propose: “The purpose of this draft law is to establish legal certainty, financial and fiscal in the businesses derived from the production and commercialization of virtual assets.”
Welcome to the presentation of Paraguay´s crypto friendly bill’s proposal, this will allow us to safeguard and optimize our renewable energy.
Bienvenidos a la presentación del proyecto de ley crypto amistosa de Py, nos permite salvaguardar y optimizar nuestra energía renovable pic.twitter.com/9vShh8z3Cw
— FernandoSilvaFacetti (@FSilvaFacetti) July 14, 2021
The new law also aims to regulate cryptocurrency mining processes, and says those who mine will require a Virtual Asset Mining License. To enforce this new legislation, it is proposed that "monitoring and control mechanisms for transactions involving cryptocurrency virtual assets,” will be set up.
Several Central and South American countries have recently expressed interest in Bitcoin, and have either passed it as legal tender like El Salvador, or are hoping to use it as a hedge against inflation as seen in Argentina. What will Paraguay’s future in crypto be?