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- The government would like to first establish legal certainty for the production as well as the commercialization of virtual assets.
- The government intends to introduce a robust regulatory system that includes a straightforward licencing regime.
- The proposal also entreats Paraguay’s Ministry of Industry and Commerce to supervise the licensing regime.
Paraguay has finally revealed its details for the nation’s new crypto legislation as it plans to join the Latin America’s emergency cryptocurrency race. Senator Fernando Silva Facetti and Congressman Carlos Rejala have already submitted the updated version of the Bitcoin bill to the National Congress of Paraguay. Apparently, the hype of Paraguay becoming the second country after El Salvador to declare bitcoin as a legal tender.
However, the Paraguayan government legalizing bitcoin as a form of currency is still very unlikely. It seems like first the government would like to first establish legal certainty for the production as well as the commercialization of virtual assets.
Paraguay Plans on Regulating Both Crypto Mining and Crypto Trading
As per the brand new proposed legislation, the government intends to introduce a robust regulatory system that includes a straightforward licencing regime. This will facilitate the cryptocurrency firms to carry out their operations in Paraguay.
Behind this is the government’s intention to attract high-tech crypto-related companies with enhanced innovation in their country. The bill specifically focuses on taxation and mandates all crypto companies to be registered with its Undersecretariat of State Taxation. Clearly the government plans of regulating both crypto mining and crypto trading within the country.
The Licensing Regime is Mandatory for all Crypto Firms Within Paraguay
The proposal also entreats Paraguay’s Ministry of Industry and Commerce to supervise the licensing regime as it has a considerable number of ministers as well as support to successfully carry out the registrations, supervision, and commercial controls on crypto companies.
Moreover, the bill demands regulatory data from the National Securities Commission, the Secretariat for the Prevention of Money Laundering, and the National Electricity Administration.
The new licensing regime will be applicable for all crypto mining operations, exchanges, cryptocurrency projects, traders, and other businesses such as digital-asset custodial services within Paraguay.
Keeping aside the new regulations, it is evident that Paraguay has been taking inspiration from El Salvador. Congressman Rejala earlier tweeted that it was high time that Paraguay goes hand in hand with the new technologies.
Rejala leads the week as he announces a very important project to innovate Paraguay in front of the world. Rejala added laser to his profile picture just like El Salvador’s president Bukele to exhibit his bullish views on Bitcoin.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
