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Reportedly, the Paraguay Bitcoin bill seeks to regulate crypto ownership and registration, as well as mining and trading.
The Bitcoin (BTC) draft bill of Paraguay will require all cryptocurrencies to be registered with the country’s Undersecretariat of State Taxation. The new law will be introduced into Paraguay’s legislature tomorrow.
A loosely translated part of the leaked bill reads:
“The purpose of this draft law is to establish legal certainty, financial and fiscal in the business derived from the production and commercialization of virtual assets.”
Additionally, the bill will regulate crypto mining and trading. In the latter, participants will need to register as “obligated subjects” in crypto exchanges and peer-to-peer marketplaces. “It is important that companies can register these products within their accounting so that they can have their real valuation,” the document read.
More so, registration ensures all citizens and organizations are tax compliant. For supervisory authorities, registration will enable them to easily trace and track the country’s products. Specifically, the bill’s rationale states that crypto mining should be viewed as an industrial activity. Crypto mining utilizes capital, labor, machinery, and construction of civil infrastructure. For this reason, it should be under the scope of the Ministry of Industry and Commerce.
Following approval of the bill, Paraguayan mining and exchange companies will be able to finance their operations with digital assets. This is according to a last month’s statement made by 36-year-old Congressman and entrepreneur, Carlos Rejala.
Rejala also said that such firms will be able to remit dividends overseas besides capitalizing on their profits in domestic banks. The bitcoin supporter is expected to present the Bitcoin bill tomorrow, to attract international crypto miners and other crypto businesses.
Additionally, he continues to call on crypto miners saying the country’s $0.05/kilowatt-hour electricity bill, is the cheapest in the region. Almost 100% of energy is generated from hydroelectric sources, Rejala pointed out.
Paraguay Bitcoin Bill
Notably, Paraguay is following in the footsteps of El Salvador, which became the first nation in the world to make Bitcoin its legal tender. The latest bill seeks to position the South American nation as the crypto hub for Latin America, Rejala noted. Should it be approved, Rejala promises to return presenting a second bill proposing Bitcoin as a legal tender.
Meanwhile, other institutions and organizations in the country continue to embrace Bitcoin as a means of payment. Paraguay University (Universidad Americana), for instance, will begin accepting cryptocurrencies as a form of payment starting in August. The institution will accept Bitcoin, Ether, and XRP degree and course fees.
Other learning institutions have approached the University for assistance in implementing a similar means of payment. Director general Camilo Jiménez Agüero said the pandemic-fueled digital payments have boosted the adoption of crypto payments.
Furthermore, Paraguayan entertainment company Grupo Cinco, announced that it will accept cryptocurrencies as a means of payment starting July.