Paraguay Compliance Report

Generated 2026-09-22

Regulated (Existing Law)

Regulatory Overview

Regulatory Status: Crypto regulated under existing securities/payments/banking law
Key Regulator(s): Public Ministry, Central Bank of Paraguay, National Directorate of Tax Revenue, Securities Superintendency
Primary Legislation: Law No. 7572/2025 on the Securities and Products Market: Formalizes oversight of
Travel Rule: Not adopted
Tax Reporting: Gains derived from the sale of goods and rights, including intangible assets like cryptocurrencies, are subject to IRP.. This typically falls under the "Rentas y Ganancias de Capital" (Capital Rents and Gains) category.. Tax Rate: A flat rate of 10% is applied to the net gain (selling price minus acquisition cost and related expenses).. How it works: If you buy crypto for 100 PYG and sell it for 150 PYG, your gain is 50 PYG. The tax would be 10% of 50 PYG = 5 PYG.. For companies or individuals conducting crypto activities as a regular, organized business, all income, including gains from crypto sales, is integrated into their general business income.

Key Facts

aml Law No. 6903/2022 ("Ley que regula la industria y comercialización de criptoactivos") was the initial, comprehensive attempt to regulate crypto mining and commercialization. However, this law faced challenges and was repealed and replaced by Law No. 7041/2023 in January 2023. Law No. 7041/2023 itself underwent a presidential veto primarily regarding crypto mining, which was then overridden by the Congress. This law mainly focuses on the energy consumption and commercialization aspects related to crypto mining, rather than a broad licensing regime for VASPs. SEPRELAD (Secretaría de Prevención de Lavado de Dinero o Bienes): This is the key regulatory body for AML/CFT compliance for virtual assets. SEPRELAD defines Virtual Asset Service Providers (VASPs) and sets forth their obligations. Resolution No. 222/2022: This resolution from SEPRELAD specifically established guidelines for the prevention of money laundering and terrorism financing for Virtual Asset Service Providers. It defines what constitutes a VASP and outlines their obligations. Resolution No. 24/2023: This resolution modified certain aspects of Resolution No. 222/2022, particularly detailing reporting requirements for VASPs. FATF Recommendations: Paraguay, as a member of GAFILAT (the regional FATF-style body), adheres to FATF recommendations, which include guidance on virtual assets and VASPs (Recommendation 15 and its Interpretive Note). Law No. 7041/2023: While primarily focused on the energy aspects of crypto mining, this law indirectly touches upon the commercialization of crypto. However, it does not establish a specific licensing regime for VASPs in the sense of financial services licensing, deferring that to SEPRELAD's AML/CFT framework. Exchanges (Virtual Asset Exchange Providers): Entities that conduct the exchange between virtual assets and fiat currencies, or between one or more forms of virtual assets, are considered VASPs.
custody Law No. 6995/2022: Ley que crea el marco regulatorio para la explotación comercial de la minería, comercialización y la industrialización de activos digitales criptoactivos (Law creating the regulatory framework for the commercial exploitation of mining, commercialization, and industrialization of crypto digital assets). Regulatory Reference: Ley N° 6995/2022, promulgated in December 2022. Official Link (to the law's promulgation and text): Gaceta Oficial de Paraguay (Search for Ley N° 6995) Ministry of Industry and Commerce (MIC): This is the primary regulatory body designated by Law 6995/2022 for issuing operating licenses and overseeing the activities related to the commercial exploitation, mining, commercialization, and industrialization of crypto assets. National Electricity Administration (ANDE): Involved in regulating electricity supply for mining operations. Banco Central del Paraguay (BCP): The BCP has historically maintained a cautious stance. They have issued statements emphasizing that cryptocurrencies are not legal tender in Paraguay and do not fall under their direct regulation as financial instruments or currencies. They typically do not issue licenses for crypto-related financial services. BCP Stance Example: Comunicado del BCP sobre criptomonedas (2021) (While older, it reflects their general position of non-recognition as legal tender/financial instrument under their direct oversight). General Operating License: Law 6995/2022 mandates that any company engaged in the "commercial exploitation, mining, commercialization and industrialization of crypto assets" must obtain an operating license from the Ministry of Industry and Commerce (MIC).
enforcement Entity Targeted: Numerous individuals and groups operating large-scale, unauthorized cryptocurrency mining farms. Outcome: Hundreds of illegal mining farms disconnected, numerous arrests, significant economic losses to operators through equipment confiscation and fines, and continued efforts by authorities to curb the practice. Entity Targeted: The general public and potential Virtual Asset Service Providers (VASPs). Violation Type: Not applicable, as these are warnings/guidance, not punitive actions. Penalty Amount: Not applicable. Outcome: Increased awareness of risks, and a clear signal that regulatory oversight for VASPs is developing. SEPRELAD has issued guidance on AML/CFT for VASPs, indicating future enforcement will likely come from them once a comprehensive licensing regime is in place. Outcome: Hundreds of illegal mining farms disconnected, numerous arrests, significant economic losses to operators through equipment confiscation and fines, and continued efforts by authorities to curb the practice. Outcome: Increased awareness of risks, and a clear signal that regulatory oversight for VASPs is developing. SEPRELAD has issued guidance on AML/CFT for VASPs, indicating future enforcement will likely come from them once a comprehensive licensing regime is in place.
general Investment of Money or Assets: A person provides money or other valuable assets. In a Common Enterprise: The investment is pooled with others in a common venture or project. With an Expectation of Profit: The investor expects to derive profits or returns from the investment. Derived Primarily from the Efforts of Others: The profits are expected to come primarily from the managerial or entrepreneurial efforts of the issuer or a third party, rather than from the direct efforts of the investor themselves. Security Tokens (Investment Tokens): Tokens explicitly designed to represent ownership (equity), debt, or a share in profits/assets of an enterprise are almost certainly classified as securities. This includes tokens representing shares in a company, real estate, funds, or other traditional assets. Utility Tokens (if marketed for investment): Even if a token has a potential future utility within a platform or network, if it is offered and marketed primarily as an investment opportunity with an expectation of profit based on the development efforts of the issuer or others, it would likely be considered a security at the point of initial offering. The emphasis is on the expectations of the reasonable investor at the time of purchase. Initial Coin Offerings (ICOs): Most ICOs, especially those launched to fund a project with an expectation of future returns for investors, would likely fall under the definition of a public offering of securities. Stablecoins: Generally, stablecoins themselves are less likely to be classified as securities if their primary purpose is to maintain a stable value relative to a fiat currency or other asset, and they do not offer an expectation of profit beyond maintaining their peg. However, certain structured stablecoin offerings that involve yield generation or profit-sharing mechanisms could be scrutinized. Law N° 6.995/2022 defines "virtual assets" broadly, which includes stablecoins, but this doesn't preclude them from being considered securities under specific circumstances.
licensing Administración Nacional de Electricidad (ANDE) - The national electricity company (for electricity theft). Ministerio Público (Public Ministry/Prosecutor's Office) - For criminal investigations and prosecutions. Policía Nacional (National Police) - For raids and arrests. Theft of Electricity / Illegal Connection to the National Grid: This is the primary violation. Damage to Public Property: Due to overloaded infrastructure. Potential Money Laundering/Illicit Enrichment: In larger cases, investigations may broaden. Fines from ANDE: Compensation for stolen electricity, often in the hundreds of thousands or even millions of dollars collectively across all operations. Criminal Charges: Arrests, pre-trial detention, and potential prison sentences for theft, fraud, or damage to public assets.
sanctions The Central Bank of Paraguay (Banco Central del Paraguay) is the institution that publishes economic data including GDP contraction figures, but no crypto-asset regulatory authority or virtual asset framework is attributed to it Paraguay - Overview A search of Paraguay's Congreso Nacional legislative database and the Gaceta Oficial confirms that no primary legislation specifically governing crypto assets exists in Paraguay, including no law numbers, dates, or official instrument numbers related to virtual assets. The most recent financial legislation identified concerns general banking and investment frameworks only. Paraguay has a general tax reform in force as of 1 January 2020, which extended the source or territoriality principle and introduced taxation of digital services (Article 17 of Law No. 6380/2019), but it is not specified whether digital services includes crypto-related services Paraguay - Overview Paraguay's transfer pricing regulation has been in force since 1 January 2021 (Decree No. 3984/2020) and follows OECD guidelines, but no connection to crypto-asset transactions is established Paraguay - Overview Paraguay's new investment framework was updated through Law No. 7548/2024 (Investments), Law No. 7547/25 (Maquila), and Law No. 7546/25 (Assembly), but none of these laws address crypto assets or virtual asset service providers Paraguay - Overview Paraguay's most recent FATF Mutual Evaluation Report was published in 2024. According to FATF's official "High-risk jurisdictions subject to a Call for Action" and "Jurisdictions under Increased Monitoring" pages (accessed November 2025), Paraguay is not listed on either document. FATF's latest updates were published in June and October 2025. The U.S. Department of State maintains a country page for Paraguay covering bilateral relations and engagement, but the content does not reference any sanctions or restrictions specifically targeting Paraguay's financial or crypto sectors Paraguay - United States Department of State No information on any licensing requirement for crypto businesses, virtual asset service providers, or Web3 operators in Paraguay is available in the Central Bank of Paraguay's regulatory database or the National Securities Commission's published regulations. As noted in the Executive Summary and Regulatory Framework sections above, the absence of a crypto-specific licensing framework is a foundational gap in Paraguayan law.
stablecoin General Classification (Primary): Stablecoins generally fall under the definition of "Virtual Assets" (Activos Virtuales) as per Law No. 6977/2022. Article 3 of Law 6977 defines "Virtual Asset" as: "A digital representation of value or rights that can be digitally transferred, stored, or traded, and that is accepted by natural or legal persons as a means of exchange or investment, but does not constitute legal tender issued by a central bank or public authority." Stablecoins, by their nature, fit this broad definition. E-money/Payment Tokens: The Banco Central del Paraguay (BCP) has generally maintained a cautious stance. As of now, stablecoins are not officially classified as e-money or payment tokens under the existing financial services or payment systems laws (such as Law No. 5476/2015 "De Pagos Electrónicos"). The BCP has emphasized that it does not recognize virtual assets, including stablecoins, as legal tender or as instruments under its direct supervision from a monetary policy perspective, unless they are issued by regulated financial institutions under specific circumstances that would bring them within the scope of traditional financial regulation. If a stablecoin were to function as a substitute for fiat currency within a closed payment system and be issued by a regulated financial entity, the BCP would likely assert its authority under existing laws governing electronic payments and financial services. However, this is not the current general classification for most public stablecoins. Securities: A stablecoin could potentially be classified as a security if it meets the criteria of a security under Law No. 5810/2017 "Del Mercado de Valores" (Capital Markets Law), particularly if it represents an ownership interest, a debt instrument, or offers a reasonable expectation of profit derived from the efforts of others. This is a case-by-case assessment by the Comisión Nacional de Valores (CNV). However, for most common stablecoins (e.g., USD-pegged collateralized stablecoins), this classification is less likely unless they have additional features that make them investment contracts. No specific reserve requirements are mandated directly by Law No. 6977/2022 for virtual assets, including stablecoins, as a distinct asset class. However, if a stablecoin issuer were to be classified as a regulated financial institution (e.g., if it started operating as an e-money issuer under BCP supervision), then it would be subject to the capital, liquidity, and potentially reserve requirements applicable to those entities under the Organic Charter of the BCP (Law No. 489/1995) and related BCP regulations (e.g., Resolución No. 1, Acta No. 68 del 22 de setiembre de 2021, "Reglamento para la Emisión y Operación de Medios de Pago Electrónicos").
status National Directorate of Tax Revenue (DNIT): Oversees all cryptocurrency transactions, including decentralized assets used as a medium of exchange; mandates reporting for residents, VASPs, and platforms. Securities Superintendency (SIV): Regulates tokenized assets representing property or credit rights under recent securities law. Other mentions include the Central Bank of Paraguay (BCP), which issues warnings but does not regulate virtual currencies directly, and Seprelad for anti-money laundering. General Resolution No. 47/26 (issued March 10, 2026, by DNIT): Requires sworn cryptoasset statements for transactions over $5,000 annually by individuals, VASPs, and platforms; includes wallet addresses, transaction hashes, networks, and covers donations, inheritances, NFTs. Law No. 7572/2025 on the Securities and Products Market: Formalizes oversight of tokenized assets as securities, enabling tokenization in agribusiness, real estate, and more; separates custody from exchange operations.
tax Gains derived from the sale of goods and rights, including intangible assets like cryptocurrencies, are subject to IRP. This typically falls under the "Rentas y Ganancias de Capital" (Capital Rents and Gains) category. Tax Rate: A flat rate of 10% is applied to the net gain (selling price minus acquisition cost and related expenses). How it works: If you buy crypto for 100 PYG and sell it for 150 PYG, your gain is 50 PYG. The tax would be 10% of 50 PYG = 5 PYG. For companies or individuals conducting crypto activities as a regular, organized business, all income, including gains from crypto sales, is integrated into their general business income. Tax Rate: The standard corporate income tax rate is 10% on the net profit. How it works: Gains are treated as ordinary income, and losses can typically be offset against other business income. Income generated from cryptocurrency mining activities is generally considered business income.

Sources

This report is AI-generated from publicly available regulatory sources. Last updated: 2026-09-22. View full profile