The Paraguayan Senate has approved a bill that seeks to regulate cryptocurrencies and their operation in the country. The bill, which was already presented to the deputy chamber, was approved with some changes, establishing clear definitions and tax exemptions for companies in the cryptocurrency and crypto mining sectors.
Paraguayan Cryptocurrency Bill Passes Senate Discussion
LATAM’s countries are seeking to standardize and regulate cryptocurrency in order to bring more clarity to dedicated investors to the industry in the region. On July 14, the Paraguayan Senate approved a cryptocurrency bill, which defines a number of rules that companies and individuals must follow in order to operate with cryptocurrencies.
The bill, which was introduced last year by Senator Fernando Silva Fasetti and others, was amended by the deputy chamber, proposing some changes that were considered improvements to Fasetti’s statements. The bill established the country’s Ministry of Industry and Commerce as the institution with the task of regulating cryptocurrency-related services.
Similarly, the bill defines that crypto mining companies must present an electricity consumption plan to the National Electricity Administration, which will enable these companies to cut electricity if they do not comply with it. Also electricity services will be paid in advance.
In the tax area, cryptocurrency companies will be exempt from paying value-added taxes, but will have to pay income tax.
MPs still uneasy about the bill
The cryptocurrency bill was approved by the Senate, and will now remain in the hands of the country’s president, Mario Abdo Benítez, who will have the option of either approving it or vetoing the document. However, some lawmakers expressed their dissatisfaction with the approval of the law in its current form, with some calling for a presidential veto.
Another senator, Esperanza Martinez, criticized the cryptocurrency bill initiative, saying that cryptocurrency was not even a real industry. In addition, Martinez said the industry was “electro-intensive and extractivist”, explaining that it consumed too many resources for few job offers.
Another senator, Enrique Bachetta, also supported Martinez’s views and called for a presidential veto on the legislation. If vetoed, this cryptocurrency bill would not be the first to experience it in LATAM. In June, Panama’s President Laurentino Cortizo also partially vetoed a cryptocurrency law due to concerns about money laundering issues related to crypto.
What do you think about the cryptocurrency bill approved by the Paraguayan Senate? Tell us in the comments section below.
image credit: Shutterstock, Pixabay, WikiCommons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation or recommendation or endorsement of an offer to buy or sell any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the Company nor the author is responsible, directly or indirectly, for any damage or loss alleged to be caused by or in connection with the use or reliance on any materials, goods or services mentioned in this article.