A group of Paraguayan lawmakers presented a cryptocurrency bill to the National Congress last week. However, the proposed bill turned out to be a very different proposal than what crypto followers expected. The crypto bill presented by deputy Carlos Rejala and the liberal senator Fernando Silva Facetti seeks to control and regulate cryptocurrency transactions and implement taxes. There was no mention of declaring bitcoin or any other cryptocurrencies as legal tender which was being reported earlier.
The bill classifies cryptocurrencies as a commodity.
The proposed bill states, “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.” Facetti, when consulted about the direction of the proposed law, stated, “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 also proposes the Central Bank of Paraguay as the comptroller of all the entities related to cryptocurrencies.
The proposed crypto bill seeks to tax mining imports.
The law also mentions bitcoin mining and crypto trading as activities under its scope. According to the proposal, mining-related imports will be taxed by 5%, corresponding to an aggregated value tax if the project gets approved. Also, cryptocurrency traders will have to be licensed annually, and to-be-created state institutions will carry a record of these. The proposed law states, “Any person whose main activity is that of the 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.”