28 July 2021
The long-hyped 'Bitcoin bill' was finally presented by Paraguayan Lawmakers in the National Congress. But, unfortunately, the proposed Bill turned out to be very different from what crypto followers anticipated.
The Bill presented by deputy Carlos Rejala and the liberal senator Fernando Silva Facetti didn't declare Bitcoin as Legal Tender. Instead, it stated the opposite. "Digital assets are not legal tender currencies used by the Paraguayan State, and for this reason they are not backed by the Central Bank of Paraguay"
Furthermore, the proposed Bill seeks to regulate crypto transactions to collect taxes for trading and other use cases. The law proposed the Central Bank of Paraguay as the controller of all the entities related to cryptocurrencies.
The Bill also mentions Bitcoin Mining and Trading under its scope. Mining-related imports will be levied a 5% tax in addition to an aggregated value tax. Also, cryptocurrency traders must be licensed by a competent authority, which will enable them to carry out transactions through a mandate or administration contract.
If the above Bill gets approved, the law will allow miners to register with the government and get operational licenses. Additionally, a Digital Securities Fluctuation Reserve Fund will be created, which would aid traders that lose digital assets in the market.