According to Evans, the focus is on laws that the administration can easily implement. The legislation should also take into account both short and long-term impacts. The pitch will see the law firm work hand in hand with the administration to come up with laws that will meet the needs of both the crypto community, as well as the government.
Past Legislation Work
Gresham International has done this kind of work before in other jurisdictions. A good example, in this case, would be Labuan. In this particular jurisdiction, the law firm was tasked with creating laws that would govern a new Security Token.
Evans further noted:
“The government is very serious about introducing new cryptocurrency legislation which will make them a regional leader.”
In the discussions that involved Evans and the government representatives, he concluded that the Paraguayan government was seriously considering digital assets as a long-term opportunity. The opportunity would benefit both foreign companies operating in the country and its citizens.
The government, however, made it clear that it did not have any plans in the near future to create or launch a digital currency of its own.
Paraguay Aims to Address Crypto Mining
A major economic problem currently experienced by the government involves foreigners who are setting up crypto mining hubs in the country. The mining operations tend to take advantage of the stable and cheap electricity that is available in the country. What worries the government is that this is a situation that has not been mirrored in surrounding South American countries.
Once the nationals have finalized their mining operations, they then proceed to send the crypto abroad without paying local tax. The government believes that crypto removal without tax is something that is happening because the current laws do not cover crypto mining operations.
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