After a month of anticipation, the final details of Paraguay’s new crypto legislation have been revealed as the country evolves to become a major player in Latin America’s unfolding crypto race.
The final version of the proposed Bitcoin law has been presented to Paraguay’s National Congress by progressive Senator Fernando Silva Facetti and Congresswoman Carlos Rejala.
However, it seems that a possible legalization of Bitcoin (BTC) as an official tender for use throughout Paraguay is not possible.
The proposed legislation aims to create an attractive regulatory environment in the country by introducing a simple licensing regime that will allow the crypto industry to easily open operations.
This is part of a broader strategy to attract high-tech companies that can help drive innovation within the Paraguayan economy.
The proposals suggest that the country’s Ministry of Industry and Trade should be the central body responsible for administering this licensing regime as it has the ministerial capacity and infrastructure to handle registrations, oversight and commercial controls on cryptocurrencies.
In addition, the proposals include a mechanism for regulatory input from the National Securities Commission (although the bill avoids classifying cryptos as securities products), the Secretariat for the Prevention of Money Laundering and the National Electricity Administration.
Crypto mining operations, exchanges, cryptocurrency projects, traders and other businesses such as digital asset custody services are all eligible to apply under the new licensing regime.
The politicians pushing the bill have also contacted the National Electricity Administration to prepare a preventive energy consumption plan, which will ensure supply meets demand and work to reduce carbon footprint through the use of excess power produced by the Yaciretá and Itaipú hydroelectric power plants.
Curiously, any discussion of tax has been omitted from the final bill, marking a change from previous drafts. It appears that the tax will be levied on an individual level, with the Paraguayan government looking to prosecute those who operate outside the permit system.
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