Paraguayan Senate Passes Bill Regulating Crypto Trading and Mining

Key Insights:

• Paraguay has passed a bill that establishes tax and regulatory rules for businesses. 
• Companies operating in the crypto sector will be exempt from paying a value-added tax.
• Individual and corporate crypto miners will need to report their energy consumption schedule to the National Electricity Administration.

After a year of deliberation and discussion on a comprehensive crypto framework, Paraguay has passed a bill that establishes tax and regulatory rules for businesses operating in the cryptocurrency and mining sectors.

The bill was introduced last year by Senator Fernando Silva Facetti and passed in Congress in May, with a heavy focus on the formation of a Ministry of Industry and Commerce (MIC) to oversee crypto industry service providers.

Modifications to the Bill

When the Chamber of Deputies passed the bill in May with modifications, there was an understanding that Paraguay’s Industry and Commerce Secretariat will supervise crypto mining within the country, while the National Securities Commission, Anti-Money Laundering Office and National Electricity Administration (ANDE) will regulate activities.

With these elements in place, the bill was then returned to the upper chamber and has now been approved by the Paraguayan Senate. Senator Facetti has stated that the modifications made to the bill “improved the original project”.