Paraguayan lawmakers present a very different ‘Bitcoin bill’ than expected – Bitcoin News

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A group of Paraguayan lawmakers presented a ‘Bitcoin bill’ to the National Congress last week, but it turned out to be a very different proposal than what crypto enthusiasts are getting into. were waiting. The bill aims to control and regulate cryptocurrency transactions and establish taxes. There is no mention of declaring bitcoin or any other cryptocurrency as legal tender anywhere in the proposal.

“Bitcoin Bill” presented in Paraguay

The long-awaited “Bitcoin Bill” was finally introduced in Paraguay to the National Congress by two lawmakers last week, but it was not what some had expected. The project presented by MP Carlos Rejala and Liberal Senator Fernando Silva Facetti does not aim to declare bitcoin as legal tender, as El Salvador did last month. In fact, he claims the opposite. A first draft indicates:

“Digital assets are not legal tender currencies used by the Paraguayan State and, for this reason, they are not guaranteed by the Central Bank of Paraguay”

Instead, the proposed law seeks to regulate crypto transactions so that the state collects taxes for trade and other use cases. The law proposes the Central Bank of Paraguay as the controller of all entities related to cryptocurrencies. Facetti, consulted on the direction of the proposed law, said:

It is not legal tender, it is a commodity and the purpose of the law is to regulate and control this industry. This is the basic project that we really have today.

Mining and trading are also regulated

The law also mentions bitcoin mining and trading as activities falling within its scope. Imports related to mining will be taxed at 5% corresponding to an aggregate value tax if the project is approved. In addition, cryptocurrency traders will need to be licensed annually, and public institutions to be created will keep a record of them. The project specifies:

“Any person whose main activity is that of trader must have an authorization issued by a competent authority, which allows him to carry out advice or operations by means of a mandate or an administration contract .

The law describes the penalties for non-compliance with these mandates, but it does not specify the forms that these penalties would take. If approved, the law would give miners a deadline to register with the government and obtain operating licenses. To conclude, the law mentions the creation of the Digital Securities Fluctuation Reserve Fund, which would help traders who lose digital assets in the market.

What do you think of the new Paraguayan bitcoin bill? Tell us in the comments section below.

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