Cryptocurrency Regulation in Paraguay

Cryptocurrency regulation in Paraguay is at a pivotal moment as the country moves toward formalizing a legal framework for digital assets. Traditionally, Paraguay did not regulate or supervise cryptocurrencies, however, this stance is evolving.

In July 2024, Paraguay’s Congress passed a bill aimed at regulating crypto-related activities, including exchanges, mining, custody, and trading of crypto assets. The bill mandates that crypto businesses register with the Ministry of Industry and Commerce (MIC), which will oversee authorization, supervision, and enforcement of crypto operations. Additionally, the National Securities Commission (CNV) will regulate crypto-assets treated similarly to securities, setting rules for registration and public offerings. The bill also integrates crypto service providers into the country’s anti-money laundering (AML) framework, requiring registration with the financial intelligence unit and compliance with AML regulations.

A notable aspect of the bill is its recognition of crypto mining as an industrial activity, given Paraguay’s low electricity costs. Miners must register with MIC and obtain a special consumer status from the national electricity agency ANDE, which will regulate energy consumption for mining operations. This reflects the government’s interest in harnessing Paraguay’s energy resources while controlling the sector’s impact.

Despite legislative progress, the bill has faced opposition. Some senators argue that cryptocurrency activities do not generate sufficient employment or economic value. Furthermore, President Mario Abdo Benítez vetoed a previous bitcoin mining regulation bill, citing concerns about excessive energy consumption and limited job creation, although the legislature later rejected his veto.

As of early 2025, the regulatory bill is awaiting the president’s signature to become law, marking Paraguay’s transition from an unregulated environment to a structured regulatory regime for cryptocurrencies. This move places Paraguay alongside other Latin American countries advancing crypto regulation, balancing innovation with oversight.

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