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Crypto Regulation in Paraguay

Legal

Paraguay passed a crypto regulation law in 2022 (partially vetoed). The country is known for cheap hydroelectric power, making it attractive for crypto mining. The BCP and CNV are developing regulatory frameworks.

Region: South AmericaCurrency: PYGRisk Score: 40/100

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
Mining Tax
Mining operations subject to business income tax at 10%
Summary
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

License Required
No
Regulator
BCP / CNV (Banco Central del Paraguay / Comisión Nacional de Valores)
Framework
Crypto mining and trading law (2022, partially vetoed)
License Types
--
Estimated Cost (USD)
N/A
Timeline
N/A months
Ease of Licensing
Easy
Notes
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.

AML / KYC

KYC Required
Yes
Travel Rule
No
FATF Member
No
FATF Status
Partially Compliant
Suspicious Activity Reporting
Yes

Mining

Mining Legal
Yes
Status
Legal
Electricity Cost ($/kWh)
$0.04
Renewable Energy
100%
Climate
Tropical
Infrastructure
Moderate
Tax on Mining Income
10% corporate income tax
Special Zones
Ciudad del Este
Notes
Very competitive electricity rates make this jurisdiction attractive for mining operations.

DeFi, Stablecoins & NFTs

DeFi: unclearStablecoins: no rulesNFTs: no_rulesCBDC: none

Soken Services

Legal Opinion
Available | $3,000 - $12,000 | 10 days
Banking
Difficulty: Hard | Crypto-friendly banks: none listed
Min. Deposit
$10,000
Fiat Rails
SWIFT, Local ACH
Card Payments
Visa, Mastercard
Company Registration
$8,000 | 30 days | Sociedad de Responsabilidad Limitada (SRL)

Sources

Banco Central del Paraguay
Reviewed: 2026-03-01likely

Frequently Asked Questions

Is crypto legal in Paraguay?
Cryptocurrency is currently classified as "Legal" in Paraguay. Paraguay passed a crypto regulation law in 2022 (partially vetoed). The country is known for cheap hydroelectric power, making it attractive for crypto mining. The BCP and CNV are developing regulatory frameworks.
What is the crypto tax rate in Paraguay?
In Paraguay, the personal capital gains tax on crypto is 10% on income from capital investments, and the corporate tax rate is 10% corporate income tax. 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.
Do I need a crypto license in Paraguay?
No, Paraguay does not currently require a specific crypto license, though other financial regulations may apply.
Is crypto mining legal in Paraguay?
Yes, crypto mining is legal in Paraguay. Electricity costs approximately $0.04/kWh. Mining income is taxed at: 10% corporate income tax. Very competitive electricity rates make this jurisdiction attractive for mining operations.
What are the AML/KYC requirements for crypto in Paraguay?
Yes, crypto businesses in Paraguay must comply with KYC (Know Your Customer) requirements. FATF compliance status: partially_compliant.