Paraguay's Senate passes bill on mining and trading in crypto assets

The Ministry of Industry and Commerce has been appointed as the main regulator

18.07.2022 - 15:00

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What’s new? The Senate of Paraguay approved a bill that regulates the regulatory framework for the cryptocurrency industry. In doing so, some changes were made to the document, establishing clear definitions and tax incentives for trading platforms and mining companies. The main change was the appearance of a regulatory body, namely, the Ministry of Industry and Commerce (MIC).

Sancionan normativa que regula la comercialización de criptoactivoshttps://t.co/fP7fkLKbXh #SenadoPy pic.twitter.com/lA5YT9vbVE— SenadoPy (@SenadoresPy) July 15, 2022

Contents of the bill. Cryptocurrency mining companies need to provide an energy plan to the National Electricity Administration, which will be able to cut off power in case of non-compliance with the document. At the same time, the energy must be paid for in advance.

Cryptocurrency companies are exempt from paying VAT, but are subject to income tax.

The MIC is responsible for licensing miners. In the long run, there will be a registry of individuals and companies that provide trading and custodial services to third parties. The Secretariat for the Prevention of Money and Property Laundering and the National Securities Commission will also be in charge of regulation.

After approval in the Senate, the bill has been sent to Paraguayan President Mario Abdo Benítez for consideration.

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