A group of Paraguayan lawmakers presented a Bitcoin Bill in the National Congress last week. But it has turned out to be a very different proposal than what crypto followers were expecting. This bill is seeking to control and regulating cryptocurrency transactions and establishing taxes.
There is no particular mention of declaring bitcoin or any of the other cryptocurrencies as per the legal tender anywhere in the proposal.
This long-hyped bill of bitcoin was presented in Paraguay to the National Congress by two of the lawmakers in the last week. But it was not what some of the others had anticipated. The deputy, Carlos Rajala, and the liberal senator, Fernando Silva Facetti, presented the project. But they didn’t aim to declare bitcoin a legal tender as El Salvador did in the previous month. This bill states something opposite.
An early draft stated, “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.”
In place of this, the proposed law is seeking to regulate cryptocurrency transactions for the state to collect taxes for use in trading purposes and other kinds of use cases. This law proposes the Central Bank of Paraguay as the comptroller of all of the entities, which are related to cryptocurrencies.
Facertti, while consulting about the direction of the law which has been proposed, stated that “This is not a legal tender, this is a commodity and the purpose of the law is to regulate and control this industry. That is the base project that we have today.”
The law also specifies bitcoin mining and trading as activities within this scope. The imports related to mining will be taxed with 5% of the corresponding aggregated values for tax. In case the project gets approved, this will be applicable.
The crypto traders must renew their license annually that will be created by state institutions, which will be carrying a record of all these.
This law also describes the sanctions for not complying along with the mandates. But it does not specify the forms that these sanctions would take. After approval, the law would get a particular period for the miners to register themselves with the authorities of the government and get their licenses. The law mentions the development of the Digital Securities Fluctuations Reserve Fund to aid traders in case of loss of digital assets.