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Monday, March 27, 2023

Paraguayan Senate Approves Cryptocurrency Bill

Paraguayan Senate Approves Cryptocurrency Bill – To provide greater clarity to investors committed to the industry in the region, Latam countries are working to standardize and regulate cryptocurrencies. On July 14, the Paraguayan senate approved a cryptocurrency bill that lays out a number of guidelines that businesses and individuals must abide by in order to use cryptocurrencies.

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The bill, which Senator Fernando Silva Facetti and others introduced last year, was changed by the deputy chamber, which made certain suggestions that Facetti felt were improvements. The bill designated the country’s Ministry of Industry and Commerce as the institution in charge of regulating cryptocurrency-related services.

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The measure also stipulates that cryptocurrency mining companies must submit a power consumption plan to the national power administration, which has the authority to cut off their power supply if they don’t comply. Additionally, advance payments will be required for the power services. Companies that deal in cryptocurrencies will not be subject to value-added taxes, but they will be required to pay income taxes.

The cryptocurrency bill has been adopted by the Senate, and now Mario Abdo Bentez, the president of the country, must decide whether to endorse it or veto the bill. However, certain parliamentarians voiced their displeasure with the law’s adoption in its current form, advocating for a presidential veto in specific cases.

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Another senator, Esperanza Martnez, criticized the cryptocurrency bill attempt and claimed that it was not even a legitimate sector. Martinez added that the sector was “electro-intensive and extractivist,” noting that it used a lot of resources to support the few jobs it provided. Another senator, Enrique Bacchetta, agreed with Martinez’s viewpoints and called for a presidential veto of the legislation. 

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This bitcoin measure won’t be the first in Latin America to be vetoed if it passes. Due to concerns about potential money laundering problems associated with cryptocurrencies, the president of Panama, Laurentino Cortizo, partially vetoed a cryptocurrency law in June.

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