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Crypto registration is part of Paraguay’s new law

A leaked draft of the proposed Bitcoin law from the Paraguay government shows the bill is nothing like El Salvador’s
Paraguay

A leaked draft of the proposed Bitcoin law from the Paraguay government shows that the crypto bill is nothing like El Salvador’s.

Congressman Carlos Rejala and Senator Fernando Silva Facetti are trying to regulate Bitcoin, and a new bill is going to be proposed to Paraguay’s government tomorrow. According to Decrypt, that gained access to a leaked copy of the draft, the law will require registration of crypto assets with the country’s Undersecretariat of State Taxation.

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“It is important that companies can register these products within their accounting so that they can have their real valuation, additionally [it] helps to optimize the tax collection of this industry, finally giving traceability of what is produced in the country facilitating its tracking by supervisory authorities.”

Leaked draft
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Carlos Rejala

The bill also includes regulations for cryptocurrency mining. This activity must be seen as an industrial one and should be under the purview of the Ministry of Industry and Commerce. Trading made through exchange platforms was also mentioned in the draft. Each party of the peer-to-peer marketplace will have to register as regulated subjects.

“The purpose of this draft law is to establish legal certainty, financial and fiscal in the businesses derived from the production and commercialization of virtual assets.”

Leaked draft

The president of El Salvador announced in June that the law will come into effect on September 7. Everyone who will download the Chivo e-wallet from elsalvador.com will get $30 of bitcoin. The amount will be sent to each user after their identity gets verified through the app’s face recognition software. The feature was presented by El Salvador’s president Nayib Bukele in June.

The lofty ambitions of El Salvador to boost Bitcoin adoption might be shattered if the country’s courts rule that President Bukele’s Bitcoin bill is illegal. The Farabundo Mart National Liberation Front (FMLN), a coalition of people and political parties, has filed a lawsuit alleging that President Bukele’s Bitcoin adoption plan is illegal.

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