Bitcoin Regulation In Paraguay – Bitcoin Magazine: Bitcoin News, Articles, Charts, and Guides

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A few weeks ago, Paraguayan Congressman Carlitos Rejala sent us a translated version of legislation seeking to clarify the legal status of bitcoin and other cryptocurrencies in his country. Coming shortly after lawmakers in El Salvador — located just 3,000 miles away — had established bitcoin as legal tender, many in the space were optimistic that this legislation would attempt to grant BTC similar status in Paraguay.

That was not the case. While El Salvador’s final bill was just a few pages of text representing easily the most favorable, accommodating Bitcoin legalese ever passed, the early draft of Paraguay’s legislation set a different tone. It seeks to establish bitcoin as property, rather than legal tender; it would require bitcoin miners to obtain government licenses for their operations, an apparent restriction on the free use of power to create permissionless value; and it detailed sanctions and penalties for those who would violate its proposed rules, which included measures to protect cryptocurrency investors as well.


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