Paraguay’s legislators present a completely different “Bitcoin bill” than expected

Jul 19, 2021

A group of Paraguayan lawmakers unveiled the “Bitcoin Law” at the National Congress last week, but it turned out to be a very different proposal from what crypto watchers had expected. The bill aims to control and regulate cryptocurrency transactions and set taxes. There is no mention of claiming Bitcoin or any other cryptocurrency as legal money.


Paraguay’s “Bitcoin Bill”

According to the newsThe “Bitcoin Law” was introduced by two lawmakers at the Paraguay National Congress last week, but not what some expected. The project presented by Congressman Carlos Rejala and Liberal Senator Fernando Silva Facetti is not intended to declare Bitcoin as legal money, as El Salvador did last month. In fact, they say the opposite. The original design said:

“Digital assets are not legal currencies used by the State of Paraguay and for this reason they are not supported by the Central Bank of Paraguay.”

Accordingly, the proposed law seeks to regulate cryptocurrencies so that the state levies taxes on transactions and other use cases. The law suggests that the Central Bank of Paraguay be the regulator of all crypto-related institutions. When asked to comment on the direction of the proposed law, Facetti said speak:

“It’s not legal money, it’s a commodity, and the purpose of the law is to regulate and control the industry. This is the basic project that we really have today. “

Mining and trade are also regulated

The bill also mentions Bitcoin mining and trading as regulated activities. Imported goods related to mining are taxed at 5% of the total VAT if the project is approved. In addition, traders must be licensed every year and the state organization to be established must prove this. The bill states:

“Every person whose main activity is a trader must obtain a permit from the competent authority that enables them to carry out consultations or to do business through a permit or an operating contract.”

The draft law describes penalties for non-compliance with the regulation, but does not specify the form in which the penalties are imposed. When the law is passed, the law gives miners a deadline to register with the government and obtain a license to operate. Finally, the law deals with the creation of a digital equity volatility reserve. This fund will support traders who have lost digital assets in the market.

Minh Anh

According to News Bitcoin

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