In spite of opposition from the central bank and the budget committee, the Paraguayan Congress has adopted a new crypto regulatory measure
Low electricity cost and taxes, the government has recognised this possibility by proposing new digital asset laws.
The Paraguayan Congress adopted a measure regulating cryptocurrency trade, mining, and storage by a vote of 40 to 12 on May 25. To eventually reach President Mario Abdo Bentez, the law must now be passed by the Senate.
If enacted, the measure would apply to any person or entity in Paraguay that engages in the mining, marketing, trading, transfer, production, custody, or administration of cryptocurrencies or services linked thereto. The proposal provides financial and legal assurances for enterprises and people, as well as spending and taxes constraints on energy.
Article 11 of the law translates as follows: "Crypto mining is recognised as an industrial and inventive activity. This activity will be eligible for all incentives and processes stipulated by national law.
The Paraguayan Central Bank and budget committee both disapproved of digital currencies, describing the movement as a
high-risk initiative with little advantage to the state
This comment was also backed by the common notion that cryptocurrency promote illegal enterprises and significantly raise power bills.
Paraguay is one of a number of Latin American nations actively researching the governance of digital assets. El Salvador initiated the trend of legalisation by accepting Bitcoin (BTC) as legal money in June 2021. Brazil, Argentina, Uruguay, and Panama are among the other nations now discussing crypto law.