THE EX – Paraguay could soon have a fiscal and regulatory base governing the cryptocurrency exchangesminers, and other crypto businesses in the country.
Paraguay: advantageous crypto taxation
The tax heavens in the country are quite lenient. The qualifiers opted for equal treatment. Thus, crypto companies in Paraguay, are exempt from payment of value added tax (VAT). However, they will be subject to income tax.
The Paraguayan Senate passed the bill. It focused on this tax and regulatory framework for crypto businesses on July 14. Adopted by Congress in May this year, the text is now only one step away from being ratified by President Mario Abdo Benítez.
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A Ministry for Crypto Businesses
Congress issued a notice in May. It specifies the sectors concerned by this bill. The mining, marketing, intermediation, exchange, transfer, safekeeping or administration of cryptocurrencies or instruments allows the control of these.
The text, adopted by the Senate, affects a chaperone or controller, it is according to companies operating in these industries. It provides for the creation of a Ministry of Industry and Trade (MIC). He will be responsible for supervising the crypto companies governed by this bill.
Mining: a current that passes well.. or not!
The new regulatory framework also tackles the thorny problem of the energy consumed by minors. In this regard, the text of the provisions that govern the relationship between mining operations and local electricity suppliers.
On paper, the National Electricity Administration (ANDE) is watching for abuse. Minors have the obligation to communicate to the institution their energy consumption schedule. They expose themselves to a cut in the supply of electricity, in the event of exceeding the actual energy expenditure, in relation to consumers.
The carrot follows the stick. The bill provides for a subsidy of energy costs minors. Despite this gift offered by cryptocurrency mining companies, miners will have to bear a 15% higher rate.
With a relatively mild regulatory climate, Paraguay could therefore become the new El Dorado for crypto companies, and increase even more the attractiveness of South America for industry giants.
Players in the traditional financial ecosystem are floundering and seeking to regulate (and tax) as much as possible. Discover Bitcoin, Ethereum and cryptocurrencies a little better every day! start to accumulate and trade your first BTC and ETH by registering on the FTX reference platform. Plus, you get a lifetime discount on your trading fees (affiliate link).