What is Paraguay's FATF status?

Paraguay is classified by FATF as: partially_compliant.

What is the AML/KYC regime in Paraguay?

KYC is mandatory for crypto businesses.

🇵🇾 Paraguay

Cryptocurrency activities in Paraguay are legal with some regulatory framework in place, including a partially vetoed Crypto mining and trading law from 2022.

Overview

Status	Legal
Risk Score	40/100 (Moderate Risk)
Region	south america
Currency	PYG

Tax Information

Capital Gains (Personal)	10% on income from capital investments
Capital Gains (Corporate)	10% corporate income tax
VAT on Crypto	No
Staking Tax	No specific guidance
Airdrop Tax	No specific guidance

Paraguay has low tax rates. The 10% income tax rate is attractive for crypto businesses. Cheap electricity (from Itaipú dam) makes mining operations cost-effective.

Licensing & Registration

Required	No
Regulator	BCP / CNV
Framework	Crypto mining and trading law (2022, partially vetoed)
Ease	easy

The partially vetoed 2022 law addressed crypto mining regulation. Paraguay's cheap electricity attracts mining operations. ANDE (electricity authority) has created special tariffs for crypto miners.

Enforcement Activity

Level: Low

ANDE has cracked down on illegal mining operations stealing electricity.

AML / KYC

KYC Required	Yes
Travel Rule	No
FATF Member	No
FATF Status	partially_compliant
FATF Body	GAFILAT
Suspicious-Activity Reporting	Yes

DeFi, Stablecoins & NFTs

Status: Unclear

No DeFi regulation.

Stablecoins

Status: no_rules

No framework.

NFTs

Status: no_rules

No regulation.

Mining

Legal	Yes
Electricity Cost	$0.037/kWh
Renewable Energy	99%
Infrastructure	fair

Paraguay has very low electricity costs due to abundant hydroelectric power, making it attractive for crypto mining. Infrastructure is developing but still limited compared to major hubs.

Geopolitical Risk

Stability	moderate
Sanctions	No
Corruption Index	28/100
Banking Access	moderate

Risk Factors

political instability
infrastructure limitations
regulatory uncertainty

Paraguay is moderately stable with some political risks and moderate corruption. It is not under international sanctions. Banking access for crypto firms is improving but still challenging.