The publicity around Paraguay emerging as the 2nd country to legalizing Bitcoin has doing rounds since El Salvador announced crypto as legal tender the previous month. But, a leaked draft of the cryptocurrency bill that Paraguayan congressman Carlos Rejala intends to present in the Chamber of Deputies – similar to Lok Sabha in India – doesn’t allude to make cryptocurrency including Bitcoin legal in the nation.
Rather, it focuses on regulatory purview – particularly when it is related to taxation. First reported by Decrypt, the draft requires all crypto firms to be registered with its Undersecretariat of State Taxation.
Though the bill is drafted in Spanish, a rough translation of it mentions that the nation is setting up the law to ‘setup legal reliability, fiscal and financial in the business derived from the commercialization and production of digital assets’.
The bill aims to regulate both crypto trading and mining within Paraguay and will ask firms to register as ‘obliged subjects’.
The document proposes that, unlike El Salvador, Paraguay has a lot of similar issues that some other nations have had with crypto companies – that of taxation. The nation seemingly wishes to make certain that cryptocurrency companies are brought under its tax rules from the very beginning and wishes to have traceability for such investments and transactions.
The bill also aims to provide crypto mining a similar status as industrial activity and put it under the purview of its Ministry of Commerce and Industry.
While regulation may be considered as a positive development, Paraguay may be taking hints from problems that Salvador’s decision is encountering since its own declaration – the same declaration which provoked the 36-year old Rejala to announce his plans of making Paraguay the cryptocurrency hub of Latin America.
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