Several Paraguayan lawmakers presented a “Bitcoin bill” in the National Congress, but it seems it isn’t quite what we expected. The bill wants to control and regulate crypto transactions and put taxes in place, but there is no mention of making crypto legal tender.
The project was presented by deputy Carlos Rejala and liberal senator Fernando Silva Facetti. In fact, not only does it not declare Bitcoin legal tender in Paraguay, but it actually makes it clear that it is not:
“Digital assets are not legal tender currencies used by the Paraguayan State, and for this reason, they are not backed by the Central Bank of Paraguay.”
The proposed law wants to regulate crypto transactions in order for the state to be able to collect taxes for trading and other uses. The Central Bank of Paraguay would be the comptroller of all crypto entities.
“This is not a legal tender, this is a commodity and the purpose of the law is to regulate and control this industry. That is the base project that we really have today.”
The law further mentions that crypto mining and trading will also be regulated. Mining-related imports would have a tax of 5% corresponding to an aggregated value tax. Meanwhile, crypto traders would have to get their licenses every year.
“Any person whose main activity is that of a trader must have an authorization issued by a competent authority, which enables him to carry out consultancies or transactions through a mandate or administration contract.”