certify
Home arrow Article arrow Article Detail

Paraguay senators passed crypto taxes and regulations bill

Profile Image

Indrani bose Follow

INDIA

Jul, 21 2022

Jul, 21 2022

likes | comments 0

Article Image

A bill providing taxes and a regulatory framework for companies involved in the crypto trading services and crypto mining sectors was approved by the Senators in Paraguay.

One of the provisions is to propose the launch of the Ministry of Business and Commerce (MIC). This ministry will have the primary task to regulate service providers of the cryptocurrency industry. As this bill has passed the Senate, it moves closer to being signed into law by Paraguayan President Mario Abdo Benitez.

The legislation was proposed by Senator Fernando Silva Facetti last July and approved by Congress in May before moving on to the Senate. The bill explicitly relates to crypto mining, commercialization, intermediation, exchange, transfer, custody, and/or administration of crypto assets or instruments that enable control over crypto assets, according to a notice from Paraguayan Congress in May.

Crypto taxation is the major provision of this bill. According to local news source ABC, businesses involved in the cryptocurrency sector will be taxed similarly to those who deal with securities. The Undersecretary of State for Taxation will therefore exempt them from paying value-added tax (VAT), but they will still be subject to the income tax system.

The bill also takes into account how crypto miners should deal with regional power providers. The National Power Administration (ANDE), Paraguay's national electricity administration, need to know the energy consumption schedule of any prospective mining operations. ANDE has the right to stop providing electricity to miners if it is discovered that they are using more than anticipated. Although the plan calls for subsidies for miners' energy expenditures, they will still have to pay a rate.15% higher than other industries.

This advances the adoption and regulation of cryptocurrencies in Paraguay, making it the most recent LATAM country to do so. In 2021, El Salvador made Bitcoin (BTC) a legal tender, while countries in Brazil, Argentina, and Panama are all developing their own cryptocurrency laws.

Bill is not supported by all :

Senators pointed out the risks associated with cryptocurrencies, which prevented the bill from passing unanimously. Senator Enrique Bacchetta, one of the bill's opponents, allegedly said that while regulating the cryptocurrency industry might increase profits, he doubted whether it would ultimately result in more jobs for his fellow people. Senator Baccetta's worries were supported by Senator Esperanza Martinez, who highlighted that the energy consumption rate of miners  was much higher compared to the number of employees they would generate.


likes | comments 0

Profile Image

Indrani bose

CBW - External Analyst

INDIA

Comments
Data Centre Construction - World First artificial intelligence AI-Tech Utility Token
banner
Article
Nasdaq to Launch Crypto Custody Services by End of Q2

According to a story that was published on Friday by Bloomberg, Nasdaq (NDAQ) is planning to launch its cryptocurrency custody services by the end of the second quarter..;

Disclaimer: The information is for informational purposes only.​ This advertisement does not constitute financial advice or any other advice. You should consult with a financial professional to determine what may be best for your individual needs. None of the information and/or content available through this advertisement is intended as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any company, financial product, security or commodity. To the maximum extent permitted by law, we disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable or result in any investment or other losses. In Making the investment decision, investors must rely on their own examination of the issuer and the terms of the offerings, including the merits and risks involved. Investments are speculative, illiquid, and involve a high degree of risk , including the possible loss of investment.