Will the law lean in favor of Bitcoin? – The Paraguayan deputy, Carlitos Rejalaand the senator, Fernando Silva Facettihad announced, in July 2021, that they would present a bitcoin bill. Some observers believed that the country might imitate El Salvador. But Paraguay ultimately did not give Bitcoin legal tender. However, he continues to support cryptocurrency adoption with a new bill.
Towards a relatively soft regulatory climate for cryptos in Paraguay?
The Paraguayan Congress approved, a law Project regarding mining and the keep of cryptocurrencies, by a vote of 40 to 12. The bill is now awaiting ratification by the Senate. It is a preliminary step before it lands in the hands of President Mario Abdo Benítez.
If ratified, the bill will affect many actors carrying out various activities related to cryptocurrencies: extraction, marketing, trade, transfer, production, custody, administration of cryptocurrencies or functions related to these activities.
This bill aims to provide businesses and individuals involved in cryptocurrencies with financial and legal guarantees granted by the country:
“Cryptocurrency mining is recognized as an industrial and innovative activity. This activity will benefit from all the mechanisms and incentives provided for by national legislation. »
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Paraguay, future land of Bitcoin?
the Paraguay is therefore considered land auspicious to adoption cryptocurrencies. Indeed, the cost of its electricity is relatively low and the taxation advantageous.
The bill then aims to incentivize the development of the crypto industry in Paraguay. However, it imposes on the actors concerned some restrictions in terms of electricity consumption and taxation.
If Paraguayan legislators have decided to blow a regulatory wind favorable to the development of cryptocurrencies, some institutions rather see these last ones evil eye.
The Central Bank and the Paraguayan Budget Commission have thus qualified cryptocurrencies as “high-risk project with no benefit for the State”.
Opponents of Bitcoin (BTC) and his cadets did not fail to come out some clichés well known. On the one hand, criminals would take advantage of cryptocurrencies to develop their activities. Digital assets would explode, on the other hand, the price of electricity.
Paraguay and its neighbors in South America are countries where the adoption of cryptocurrencies records a high increase. The region is also attracting a growing number of exchange platforms, such as Huobi Global who just bought Bitex to strengthen its presence there.
The time of states’ interest in Bitcoin has come, Paraguay is an example of this. And you, what are you doing to prepare for the future? Start to familiarize yourself with the exciting world of cryptocurrencies. wait no longer for you create an account on Binancethe leading Bitcoin and crypto exchange (affiliate link).