Paraguay’s has approved a bill aimed at cryptocurrencies and their operations in the country. The bill was submitted to the Deputy House of Representatives, where it was approved, with some proposed changes to establish clear definitions and tax exemptions for companies in the and mining industry.

Paraguay’s cryptocurrency bill passes Senate discussion

Latin American countries are looking to standardize and regulate cryptocurrencies to provide clarity for investors committed to the industry. On July 14, the Senate passed a cryptocurrency bill that defines several rules that companies and individuals must abide by when using cryptocurrencies.

The bill, introduced last year by Senator Fernando Silva Facetti and others, and amended by the Deputy House of Representatives, proposes a number of changes that are considered improvements, according to a statement from Ficcietti. The bill establishes the country’s Ministry of Industry and Commerce as the agency responsible for regulating cryptocurrency-related services.

Likewise, the bill mandates that crypto mining companies submit an electricity consumption plan to the National Electricity Authority, and if these companies do not comply with the plan, they will be able to cut off electricity. In addition, the of electricity service will be paid in advance.

In the area of ​​taxation, cryptocurrency companies will be exempt from VAT but must pay income tax.

Lawmakers still uneasy about the bill

The cryptocurrency bill has been approved by the Senate and will now be in the hands of the country’s president, Mario Abdo Benítez, who can to approve the bill or apply a veto to the document. However, some lawmakers expressed dissatisfaction with the law being approved in its current form, with some calling for the president to veto it.

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Another senator, Esperanza Martínez, criticized the cryptocurrency bill initiative, saying that cryptocurrencies are not even a real industry. In addition, Martinez said the industry is “electronic-intensive and extractive”, explaining that it consumes many resources for the few jobs it provides.

Another Senator, Enrique Bacchetta, also backed Martinez, asking the president to veto the law. If rejected, the cryptocurrency bill would not be the first to experience this in Latin America. Panama’s President Laurentino Cortizo also partially vetoed a cryptocurrency law in June due to concerns over cryptocurrency-related laundering.

What do think of the cryptocurrency bill approved by the Paraguayan Senate? Let us know in the comments section below.

Sergio Goshenko

Sergio is a cryptocurrency journalist in Venezuela. He describes himself as late to the game, entering the crypto space when rose in December 2017. With a computer engineering background, living in Venezuela, and being affected by the cryptocurrency craze on a social level, he offers a different perspective on the success of cryptocurrencies and how it can help the unbanked and underserved.

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